Floki Inu (FLOKI) is having a hard time because of bearish patterns in the market, which is making buyers nervous. Some predictions say the price could go up by 220%, hitting $0.00044 by November 26, 2024. However, new research shows that the short-term technical signs point in a different direction.
Crypto analyst Alan Santana has pointed out that the token’s current sideways movement may signal further declines. Since reaching a high in March 2024, FLOKI has been trapped in a bearish trend, unable to regain its previous momentum. After a brief rally in June, the price has stagnated, reflecting a shift in market sentiment.
According to Santana, traders should “prepare for the crash”, given the current negative market dynamics in play, based on his examination of the memecoin’s price movement.
#Altcoins | #FLOKI ✴️ Floki Inu Major Drop Now Imminent: Prepare For The Crash!
I remember we traded Floki Inu successfully on the bullish side, it was a nice ride, do you remember? Market conditions have changed.
Notice the huge green candles in February 2024, these are about… pic.twitter.com/5OrScWHNeb
— Alan Santana (@lamatrades1111) October 27, 2024
Analyzing The Current Dynamics
The current technical indicators show a disturbing trend for Floki Inu. It seems the token is experiencing a long consolidation phase, which can be termed as a “distribution phase,” and the sellers are in charge.
The heavy trading volumes during its earlier bullish moves, particularly in February and March, have shifted to heavy selling in recent weeks. As of now, FLOKI trades at $0.0001315, down 1.20% over the past day, and many are watching key support levels closely.
Two really important support zones have developed. Should the bearish trend persist, analysts estimate FLOKI would retest the initial support level at $0.00009557.
Should that break, the token may drop to a possible lowest value of $0.00004200. For those clinging to their tokens, this situation begs questions about whether it is time to change their stance.
Fibonacci Levels Suggest Weakness
Another technical indicator that is negative in its sentiment is the Fibonacci retracing levels. Most importantly, for FLOKI to dominate the market, it has been consistently rejected at the 0.618 and 0.786 levels.
The persistent rejection of the price here indicates that the positive feeling is being crushed. Price action shows that FLOKI will go below its current trading range, which piles on more pressure on the holders as well.
Caution For Investors
In view of these contradictory messages, investors should still be extremely cautious. Since the immediate future seems hard, many predictions indicate there’s going to be an uptrend, and investors can hit a price that might reach $0.00044 at the end of November. However, many traders remain skeptical given the current sentiment.
The Fear & Greed Index reads at 69, marking a greed level in the market. It is basically what leads to downturns. For the last month, FLOKI had its green days at 43%, volatility rate at 7.48%. Prior to making any decisions, it could be prudent for individuals wishing to enter the market to wait for more distinct indications of positive mood. When it comes to cryptocurrency, timing can be crucial.
Featured image from Pexels, chart from TradingView