Reporter
FLOKI’s Recent Performance
- FLOKI’s Relative Strength Index (RSI) displayed lower highs over the past 12 periods.
- A surge in spot demand provided optimism for the bulls.
Following a brief dip when Bitcoin (BTC) dropped from $69k to $59.5k on March 5th, FLOKI experienced a remarkable 103.65% surge from the low to the high within 36 hours. Despite this impressive growth, signs of exhaustion were evident.
The robust backing of meme coins suggests that despite appearing overextended, FLOKI might sustain its upward trajectory. Traders are advised to be cautious and await favorable opportunities.
Current Trends
Recent momentum seems to have slowed down.
Source: FLOKI/USDT on TradingView
The 12-hour chart of FLOKI indicated that the RSI significantly exceeded the 70 mark, signaling overbought conditions.
While bullish momentum appeared unyielding, a divergence was detected in which the price reached a higher high while the RSI reached a lower high. This bearish disparity between price and momentum suggests a potential pullback in FLOKI prices.
Analysis of the 4-hour price chart identified the $0.000146-$0.000166 range as a critical demand zone. A retest of this zone could lead to FLOKI shedding 35%. However, given the substantial buying pressure indicated by the On-Balance Volume (OBV) hitting strong higher highs, a significant pullback might not materialize.
Traders should anticipate a consolidation phase around the $0.000238-$0.00025 range before a bullish breakout above $0.00026 occurs. Conversely, a drop below $0.0002 would suggest a bearish bias in the short term, prompting traders to await a bullish break in the lower timeframe structure before considering a purchase.
Market Sentiment
The prevailing sentiment has not shifted decisively towards bearish territory yet.
AMBCrypto’s examination of the Funding Rate and Open Interest associated with FLOKI revealed a rising Open Interest trend over the last 36 hours. This suggests bullish speculators are eager to capitalize on the upward price movement.
Furthermore, the positive Funding Rate signals that long positions dominate, complemented by an uptrend in the spot Cumulative Volume Delta (CVD) throughout March. This trend underscores authentic demand driving FLOKI’s price rally.
Disclaimer: The views expressed in this content are personal opinions and should not be considered as financial, investment, or trading advice.
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