Floki Inu (FLOKI) is facing difficulties due to bearish patterns in the market, which makes buyers nervous. Some forecasts say that the price can increase by 220%, hitting $ 0.00044 on November 26, 2024. However, a new study shows that temporary technical signals point in a different direction.
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Crypto analyst Alan Santana pointed out that the current movement of the token may indicate a further decline. Since reaching the high level in March 2024, FLOKI is stuck in a bearish trend, unable to recover its previous momentum. After a brief rally in June, the price has stalled, indicating a change in market sentiment.
According to Santana, traders should “prepare for a crash”, given the negative market forces at play, based on his analysis of memecoin’s price movements.
#Altcoins | #FLOK ✴️ The Floki Inu Major Drop Is Now Near: Prepare To Crash!
I remember we traded Floki Inu successfully on the bullish side, it was a good trip, remember? Market conditions have changed.
Watch out for the big green candles in February 2024, these are about… pic.twitter.com/5OrScWHNeb
— Alan Santana (@lamatrades1111) October 27, 2024
Current Power Analysis
Current technical indicators show a disturbing trend for Floki Inu. It seems that the token is going through a long consolidation phase, which can be called the “distribution phase,” and the sellers are in charge.
Heavy trading volumes during their previous highs, especially in February and March, have shifted to heavy selling in recent weeks. As of now, FLOKI is trading at $0.0001315, down 1.20% over the past day, and many are watching key support levels closely.
Two key support areas have been developed. If the bearish trend persists, analysts estimate that FLOKI will retest the initial support level at $0.00009557.
If that break happens, the token may drop to a possible low of $0.00004200. For those holding on to their tokens, this situation raises questions about whether it is time to change their status.
Fibonacci Levels Suggest Weakness
Another technical indicator that is negative in its sentiment is the Fibonacci retracement levels. Most importantly, for FLOKI to dominate the market, it is constantly rejected at the levels of 0.618 and 0.786.
A continued price rejection here indicates that the positive sentiment is being crushed. The price action indicates that FLOKI will move below its current trading range, which is piling more pressure on the holders.
Warning to Investors
Because of these conflicting messages, investors should still exercise extreme caution. As the near future looks bleak, many forecasts point to an upside, and investors can hit a potential high of $0.00044 by the end of November. However, many traders remain skeptical when looking at the current situation.
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The Fear & Greed Index reads at 69, setting the level of greed in the market. It is basically what leads to decline. Last month, FLOKI had its green days at 43%, volatility rate at 7.48%. Before making any decisions, it would be wise for people who wish to enter the market to wait for very clear indications of a positive mood. When it comes to cryptocurrency, time can be of the essence.
Featured image from Pexels, chart from TradingView