FLOKI has been facing bearish pressure as the price of the memecoin has dropped 21% on the charts in just one month. Its market cap has also fallen from $2.65 billion to $1.75 billion during this period.
At press time, these bearish trends remain in play, with the cryptocurrency trading at $0.000183 after a 1.17% drop over 24 hours. Despite the decline, FLOKI appears to be defending its key support levels. However, the lack of buy-side pressure may simply force the memecoin into range-bound consolidation.
FLOKI Price Analysis
Over the past week, FLOKI’s price has fluctuated between $0.000173 and $0.000190. One of the reasons for the lack of a clear trend is the lack of market confidence. In fact, on the one-day chart, the memecoin’s Chaikin Money Flow is negative — a sign of strong selling pressure.
Despite the negative CMF, the green volume histogram suggests that buyers were also active. The battle between buyers and sellers could be the reason why FLOKI has not been able to move sharply higher or lower, forcing it to consolidate.
On the chart, the Moving Average Convergence Divergence (MACD) line has formed a buy opportunity after crossing the signal line. Also, the histogram bars appear to have turned green, indicating that buyers have become active.
If the buying pressure continues to rise and outweighs the selling pressure, it could support a bullish breakout of FLOKI from this consolidation range.
Derivatives market sees modest recovery
A surge in open interest and derivatives volumes tends to lead to price volatility, which in turn supports strong trends. Earlier this week, FLOKI’s open interest was $16 million.
However, its sales have now soared to $24 million.
The rate hike suggests that speculative interest is rising again, which could increase volatility. Despite the rate hike, OI is still 50% lower than its mid-December level.
Key levels to watch
The Inside-Outside-Money Ratio (IOMAP) indicator shows that FLOKI is between the supply and demand zones.
According to IntoTheBlock, 2,090 addresses purchased 354 billion FLOKI tokens at an average price of $0.000180. This price could serve as a strong support level if buyers consider this an ideal entry point.
On the other hand, the key supply area is located above the press time price of $0.000186, where 1,250 addresses purchased 70 billion tokens. This area is a strong resistance level as these traders may choose to sell once they have taken profits.
Will FLOKI break away from integration?
For FLOKI to break out of the consolidation range, it will need to see another uptick in buying activity and interest from speculative traders. If that happens, it could suggest strong market confidence, which could generate positive sentiment.
However, if buyers remain hesitant and FLOKI breaks below the demand zone, it could result in a bearish breakout. Meanwhile, a break above the supply zone resistance could spark a bullish recovery.