Floki Sheds 32% in Monthly Performance: Three Concerning Trends Surface
FLOKI plunges 14% in 24 hours, inches close to historic support zone
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Floki [FLOKI], a popular cryptocurrency in the crypto industry, has been struggling as the token dropped a staggering 14% in the past 24 hours and a whopping 32% this month. Here's what's happening.
Current Support Zone Under Threat
As FLOKI traverses this turbulent market, it has come close to a crucial support zone. This support zone, ranging between 0.00007602 and 0.00007453, has been a haven for FLOKI in the past, serving as a stepping stone to significant price rallies.
However, the current market landscape doesn't seem as promising. The downward trend remains prevalent across the spot and derivatives markets, and buyer enthusiasm is noticeably lacking.
Bearish Sentiment Mounts
Market experts have pointed out that FLOKI's bearish sentiment continues to grow. Open Interest, which reflects the number of unsettled derivative contracts, plummeted by 17% in the past 24 hours, hinting at shrinking liquidity in the derivatives market.
This decreasing liquidity and increasing bearish sentiment could signal further price drops for FLOKI.
Technical Indicators Suggest Weak Market Conviction
The situation is further backed by various technical indicators. The Accumulation/Distribution line, which measures the net flow of coins in and out of wallets, shows a massive exit phase. This could imply sustained bearish pressure on FLOKI.
Similarly, the Parabolic Stop and Reverse (SAR) has taken an unfavorable stand. If the SAR maintains its current stance, it could indicate increased selling volume in the market.
Lastly, the Moving Average Convergence Divergence (MACD) has shown a bearish signal with a 'death cross' pattern. This pattern unfolds when the MACD line dips below the signal line, suggesting a possible price drop ahead.
The Light at the End of the Tunnel
In a bid to counter the ongoing bearish trend, FLOKI's team has announced a five-week marketing campaign. The campaign revolves around promoting FLOKI's upcoming play-to-earn metaverse game, which, if successful, could boost user interest and bolster FLOKI's support.
However, without an immediate uptick in adoption rates, FLOKI's downward trend might persist, leaving its support vulnerable.
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[**Source**:** CoinMarketCap, TradingView, CoinGlass, CoinCodex, Cryptomus, StealthEX, Changelly]
- Despite the ongoing market analysis indicating a bearish sentiment for FLOKI, the cryptocurrency's team has announced a five-week marketing campaign centered around promoting a play-to-earn metaverse game, with the aim of boosting user interest and bolstering FLOKI's support.
- In the realm of technology and finance, the entertainment industry has become a significant player, as evidenced by the inception of play-to-earn metaverse games, such as FLOKI's upcoming offering, which could potentially influence the market's direction.
- As blockchain technology continues to diversify and expand into various sectors, including entertainment, the crypto market remains a dynamic and ever-evolving landscape, making it essential for investors to stay informed and up-to-date through resources like our daily newsletter.
