- FLOKI whales have offloaded 30 billion tokens in the last two days, which could exert further downward pressure on the memecoin.
- FLOKI was facing a death cross on its one-day chart that could fuel a downtrend.
Floki [FLOKI] was trading at $0.00013, at press time, after a 7% gain in 24 hours. Trading Volumes also surged by 93% to $369M, highlighting rising trader interest.
Despite the 24-hour gains, other metrics, including whale activity and technical indicators, suggest that bears could regain control.
Whale selling could trigger bearish trends
Data from IntoTheBlock showsed that whale activity around FLOKI has surged. Large transaction volumes increased by more than 3,000% in 24 hours to 50.5 billion FLOKI at press time.
However, much of this whale activity appeared to stem from selling activity. Large holder netflows flipped negative, dropping from 21.39 billion to -8.42 billion.
Source: IntoTheBlock
This drop indicates that whale addresses have offloaded nearly 30 billion tokens within two days. With whales accounting for 72% of FLOKI’s supply, this selling activity could stir volatile movements.
Death cross appears on FLOKI’s daily chart
A death cross appeared on the memecoin’s one-day chart, suggesting a continuation of bearish trends. The 50-day Exponential Moving Average (EMA) converged with the 200-day EMA. A crossover below the longer-term moving average is set to fuel the downtrend.
The Relative Strength Index (RSI) shows a surge in selling activity after dropping to 32. This indicator continues to trend below the signal line, indicating strong bearish trends.
Source: TradingView
If the bearish pressure continues, the memecoin could face a 54% decline to the support at the 1.618 Fibonacci level ($0.000059).
At press time, FLOKI was testing resistance at the 0.786 Fib level ($0.000135). If it breaches this level with high buying volumes, the next target for price is $0.000206.
Long/Short Ratio shows a bullish bias
FLOKI’s Long/Short Ratio showed a surge in long positions, which points towards a bullish bias in the market as most traders anticipate gains. In the last four days, this ratio has gradually risen from 0.61 to 1.03.
Source: Coinglass
Realistic or not, here’s >FLOKI’s market cap in BTC’s terms
A surge in long positions, while positive could fail to bode well for the price if there is an unexpected swing to the downside. Such a move could trigger long liquidations that will, in turn, increase the selling pressure.
Nevertheless, if the market sentiment remains positive, it could attract more buyers to FLOKI and support an uptrend.
