FLOKI Bears Seek to Invalidate Bullish Momentum Despite 25% Correction

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 Bulls Play Second Fiddle to Sellers

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.

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.