FLOKI could struggle to sustain the price increase
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Key Takeaways
The value of tokens sold by FLOKI bears has outnumbered those purchased by bulls.
Indicators like the AO and MFI display bearish momentum and support a price decline.
While FLOKI’s price has risen above a key support area, it faces another hurdle ahead.
In 2024, FLOKI increased by approximately 450%. This performance took the memecoin’s value to $0.00032 in July.
However, FLOKI’s price has decreased by 25% over the last month. In the last 24 hours, however, it has climbed by nearly 10%, indicating that the token could be in line for another rally.
Despite the recent uptrend, the cryptocurrency might fail to continue rising. Here is why.
FLOKI’s price might continue to decrease because of the state of the Bulls and Bears indicator. This indicator tracks the activity of addresses that bought or sold at least 1% of the trading volume during a specific period.
Bulls are those who bought the mentioned volume, while bears are those who sold a similar amount. When bulls outnumber bears, the price tends to rise.
However, in this case, bears have outpaced bulls. Therefore, FLOKI’s price could drop from $0.00017 if this trend remains the same.
FLOKI Bulls and Bears Indicator | Credit: IntoTheBlock
Two other indicators that support this drop are the Money Flow Index (MFI) and the Awesome Oscillator.
The MFI uses price and volume to measure the flow of capital into a cryptocurrency. When the MFI reading rises, the trend is bullish. However, a decrease in the reading indicates a bearish trend.
The indicator also shows whether an asset is overbought or oversold. When the reading is above 80, it is overbought, and when it is below 20, it is oversold.
On Jan. 5, FLOKI reached an overbought level, causing the price to drop from $0.00021. As of this writing, the MFI reading still trends downwards, indicating that the cryptocurrency’s value might plummet in the short term.
The AO, on the other hand, measures momentum. Positive values signify bullish momentum, while negative ones indicate otherwise.
On the daily chart, the AO remains negative. If sustained, this would align with the MFI reading that indicates a decline in FLOKI’s price.
FLOKI Price Prediction: Lower Lows Ahead
Looking closely at the 4-hour chart, FLOKI has risen above the 0.618 golden ratio. However, the price is yet to break above the 0.5 Fibonacci level, meaning it still has to face resistance at that point.
Furthermore, the Cumulative Volume Delta (CVD) has dropped to the negative region. The CVD tracks the difference between the buying and selling volume within a specific period.
When it is positive, it means buying pressure is dominant. But since it has dropped to the negative region, it reinforces the notion that FLOKI bears are in control.
If this remains the same, FLOKI’s price could slide to $0.00014.
However, a rise in buying volume could invalidate this prediction, and the meme coin’s price could climb to $0.00019.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
