Floki (FLOKI) Sees Substantial Drop, Could Decline by 65%

Floki [FLOKI] has seen a substantial drop, declining by 9.94% in the last 24 hours. With new technical developments and prevailing data supporting

Memecoin Floki [FLOKI] has had a rough 24 hours. This downturn saw the memecoin’s price drop by 9.94%, setting the stage for a potential technical pattern play out.

As new technical developments unfold, prevailing data points toward a bearish outlook. However, it’s crucial to note that FLOKI’s downturn is not fully confirmed, leaving room for a potential rally.

To gain further insight into this, let’s delve into an in-depth analysis.

Floki within a Falling Wedge pattern on the 12-hour chart A 65% decline for FLOKI?

Chart patterns are a useful tool for traders to identify potential price movements. One such pattern is the Falling Wedge, which is characterized by a significant price drop followed by a consolidation phase.

During this consolidation, the price trends upward within a narrowing channel, eventually culminating in a sharp downward break.

This pattern is typically observed as the price hits the major resistance line of the channel, after which it breaches through the support. At press time, FLOKI was seen trending toward the lower support region of this channel.

Should the memecoin price break from here, there are two targets to watch out for.

The first target for FLOKI, should it break out of the pattern, is the bottom of the channel, which currently stands at 0.00009585.

Now, if the pattern replicates its previous major downward move prior to consolidation, we could see FLOKI price a lot lower at 0.00005373.

A potential halt may be on the horizon

In other news, Coinglass has reported a massive outflow of FLOKI, which was particularly evident on Binance.

The platform saw an outflow of $2.06 million worth of FLOKI over the last 24 hours. This trend of negative netflows has also been observed throughout the past week.

Such a negative netflow typically leads to a supply squeeze, as the limited availability of FLOKI could drive demand higher, subsequently pushing up its price.

However, the Open Interest (OI) fell sharply by 25.79%, decreasing to $17.88 million. This significant drop hints at a strong bearish outlook among traders, which could potentially undermine the effects of the current supply squeeze.

Sentiment remains bearish

Finally, using the Relative Strength Index (RSI) to gauge trader sentiment, we found that traders continue to bet against FLOKI, as the RSI crossed below the 50-neutral threshold and continued trending down.

Given this momentum, the memecoin is likely to revisit the channel’s starting point at $0.00009585. If the current market sentiment persists, it could further precipitate a drop to the channel’s lower target.

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