In the spot market, FLOKI's money flow remains at 0, indicating a balance between sellers and buyers.
The moving averages and RSI indicate strong potential for a deeper downtrend.
After a 40% price increase in a month, Floki [FLOKI] has failed to maintain its upward momentum in subsequent trading sessions.
In the past week, the Token has dropped by 9.99%, despite a slight increase of 0.36% in the past 24 hours.
Analysis indicates a large wave of selling is approaching, and FLOKI could experience a significant decline.
FLOKI faces hesitation from traders
Market analysis continues to show a balance between buyers and sellers, based on the money flow index.
The money flow index on the exchange helps to track whether buying or selling pressure is dominant by subtracting inflows of Tokens from outflows.
Source: Arkham
If the result is negative, it indicates that buying activity is dominant. If the result is positive, it suggests that sellers are in control. A neutral result indicates a balance of pressure and a state of hesitation among spot traders.
To gain a better understanding of the next direction for the asset, TinTucBitcoin has analyzed other market factors that may influence the movement.
Is a major downturn approaching?
Technical indicators show that FLOKI is signaling a strong decline.
The MACD indicator has formed a 'death cross' pattern, occurring when the green MACD line crosses below the orange signal line.
History shows that this pattern often predicts a market decline. FLOKI is currently in that position.
Source: TradingView
RSI also provides a clear insight into what might happen next. According to TinTucBitcoin's analysis, whenever RSI enters the overbought zone, a significant price drop has quickly followed.
The average decline from the last three instances is 64.5%.
If this pattern repeats in FLOKI's current movement, a significant decline is likely to occur, resulting in a stronger market correction.
The market remains uncertain but is trending upward
The derivatives market shows a different perspective on FLOKI's potential.
The number of unresolved derivative contracts in the market has significantly decreased, based on the OI index.
OI has decreased by 6.08% in the past 24 hours, bringing the total value of FLOKI contracts down to 21 million USD.
Source: CoinGlass
Interestingly, the Funding Rate has shifted to a positive direction at 0.0078%.
When the Funding Rate is positive, it implies that most unresolved contracts are held by long-term traders. Although this suggests increasing bullish sentiment, liquidity data indicates the situation is not entirely optimistic.
In the past 24 hours, long-term traders have lost $15,460 due to closed positions, while short-term traders have lost $23,310.
The discrepancy between these losses suggests that short positions still exist in the market, and long-term traders may face early liquidations.
Source: https://tintucbitcoin.com/floki-co-the-mat-40-loi-nhuan-som-ly-do-quan-trong/
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