After recording a significant increase over the past day, FLOKI has reached a major resistance level that could cause it to drop in price.
Selling pressure has increased simultaneously, threatening the growth potential of this asset.
Floki [FLOKI] has been among the coins with the highest increases in the market over the past 24 hours, after achieving an impressive 12% increase — following a 45% rise in the past week.
Market sentiment, which has maintained optimism, is likely to change soon, especially with new developments on the chart and in the derivatives market.
Obstacles ahead for FLOKI.
FLOKI has faced significant obstacles as the price has traded into a crucial resistance zone on the chart at the time of writing, starting from 0.00008878 and extending to 0.00010097.
The impact of this resistance level has pushed the price lower, as evidenced by the appearance of a red candlestick on the chart.
Source: TradingView
According to analysis, FLOKI might see a significant drop to the support level marked at 0.00006096, after which a recovery may occur.
However, if the buying momentum is maintained, this asset could continue its uptrend, moving into and possibly surpassing the resistance zone.
Speculators and the current price wave indicate that the continuation of the upward trend is unlikely, as selling pressure is increasing.
Selling pressure continues to rise.
According to TinTucBitcoin's analysis of exchange flow data, selling pressure continues to rise in the spot market.
Spot market traders sold a total of 1.96 million USD in FLOKI over the past 48 hours, marking five consecutive days of selling.
Source: CoinGlass
Exchange flow uses the inflow and outflow of Tokens to determine whether spot traders are buying or selling.
The same sentiment is reflected in the derivatives market. The current uptrend lacks sufficient momentum, as the derivatives volume has dropped to 55 million USD.
Source: CoinGlass
The long-to-short ratio — an indicator used to determine whether buying or selling volume is dominant — shows that sellers are in control. The ratio of 0.9654 confirms that there are more sells than buys in the market.
The ongoing sell-off in the derivatives market has increased pressure on the spot market, which could cause FLOKI to drop to the target support level of 0.00006096.
FLOKI faces liquidity challenges.
Amid the pessimistic sentiment in both the spot and derivatives markets, FLOKI also faces liquidity challenges, as recent liquidation data shows.
Typically, liquidation data shows the amount of losses of different trading groups — long and short — over a certain period. Low liquidation figures often indicate low liquidity in the market.
In the case of FLOKI, total liquidations reached 114,050 USD in the past 24 hours, with long traders suffering the largest losses at 77,440 USD — accounting for 67.89% of the total losses.
This low liquidity signals a lack of interest from market participants. With long traders incurring heavy losses, the market is likely to continue to decline, aligning with negative predictions.
Source: https://tintucbitcoin.com/floki-dat-nguong-quan-trong-thi-truong-lo-ngai/
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