- FLOKI’s price dropped by more than 5% in the last 24 hours.
- Most metrics hinted at a trend reversal soon.
FLOKI broke out of a bullish pattern a few weeks ago, and since then it has earned investors profits. If the trend continues, then it won’t be surprising to see the memecoin reaching new highs soon.
However, the bears have entered the game, which could initiate a trend reversal.
FLOKI investors enjoy profits
World Of Charts, a popular crypto analyst, recently posted a tweet revealing how FLOKI has performed since its bullish breakout. For context, the memecoin broke above a bullish pattern in mid-May.
Before breaking out, the memecoin’s price consolidated inside the pattern for multiple weeks.
The good news was that since the breakout, FLOKI has been running at 80% profit. Thanks to that, most investors also rejoiced.
AMBCrypto’s look at IntoTheBlock’s data revealed that 99% of investors were “in the money,” meaning that their portfolios were green.
However, things turned bearish in the last 24 hours. According to CoinMarektCap, the memecoin’s price dropped by more than 5% over the last day.
At the time of writing, FLOKI was trading at $0.0003104 with a market capitalization of over $2.96 billion, making it the 40th largest crypto.
Will the bearish trend continue?
AMBCrypto’s analysis of Santiument’s data revealed that despite the recent price correction, its weighted sentiment remained high. This clearly meant that bullish sentiment around it was dominant in the market.
Additionally, its social volume also increased, reflecting its popularity.
Source: Santiment
It was interesting to note that most of the other on-chain metrics also looked pretty bullish on the memecoin, as they hinted at a trend reversal. For instance, its MVRV ratio remained in the positive zone.
Its NVT ratio also dipped sharply.
A drop in the metric means that an asset is undervalued, indicating a possible price rise in the coming days.
Moreover, the memecoin’s network growth also increased last week, indicating that more new addresses were created to transfer the token.
Source: Santiment
AMBCrypto’s analysis of the memecoin’s daily chart revealed that its MACD displayed a bullish upperhand in the market.
According to the Bollinger Bands, FLOKI’s price was testing well above its 20-day Simple Moving Average (SMA). However, the Chaikin Money Flow (CMF) turned bearish as it moved southward.
Source: TradingView
Realistic or not, here’s FLOKI’s market cap in DOGE terms
If the memecoin continues to shed its value over the coming days, then investors might witness it drop to $0.00025. This seemed to be the case, as liquidation would rise sharply at that level.
On the other hand, if FLOKI turns bullish, then its price might touch $0.00036 soon.
Source: Hyblock Capital