- FLOKI’s value has dropped by 10% in the last seven days.
- Its open interest has fallen by double digits in the last week.
Dog-themed meme coin Floki [FLOKI] extended its decline, with its price falling by an additional 10% in the last week, according to CoinMarketCap’s data.
The price drop was due to a fall in the token’s network activity during the period under review. According to Santiment’s data, FLOKI’s demand assessed on a seven-day moving average has plunged significantly since 14th March.
For example, the daily count of addresses involved in FLOKI transactions has since declined by 81%. Likewise, the number of new addresses created daily to trade FLOKI has dropped by 82% during the same period.
Source: Santiment
A closer look at FLOKI’s on-chain activity showed that the dip in demand was due to the gradual rally in the realized losses from daily transactions involving the meme coin.
AMBCrypto assessed the token’s ratio of daily on-chain transaction volume in profit to loss on a seven-day moving average and found that this was 0.85. It meant that for every FLOKI transaction that ended in a loss, only 0.85 transactions returned a profit.
Bears direct the show now
Confirming that the market is under bearish influence, readings from FLOKI’s Moving Average Convergence Divergence (MACD) showed its MACD line positioned below its signal line.
When these lines are positioned this way, it is a bearish signal. It suggests that an asset’s short-term momentum is weakening relative to the longer-term momentum. The crossover is often viewed by traders as a signal to consider selling or entering short positions.
Further, FLOKI’s Chaikin Money Flow (CMF) was positioned in a downtrend at press time and appeared poised to breach its center line. Resting on the zero line, FLOKI’s CMF indicated a significant decline in liquidity inflow into the market.
A decline in an asset’s CMF suggests that selling pressure is increasing relative to buying pressure; a trend that results in a further decline in the asset’s price.
How much are 1,10,100 FLOKIs worth today?
In the meme coin’s futures market, its open interest has trended downward since 14th March. At $21 million at the time of writing, it has since fallen by 25%, per Coinglass’ data.
This decline showed that FLOKI futures traders have continued to exit their positions without opening new ones, contributing to the decline in its value.
Source: TradingView