After seeing a rise in trading activity and a price gain of about twenty percent over the course of the previous week, the Shiba Inu-inspired memecoin known as Floki Inu (FLOKI) has shot to the forefront of public attention. However, analysts warn that this "pup-ularity" may only be temporary, since it is more likely to be driven by hype than by solid foundations.


Newcomers are flocking to FLOKI as open interest continues to soar.

The rising Futures Open Interest for FLOKI is the primary contributor to the enthusiasm that is being generated. Since May 1st, this statistic, which represents the amount of futures contracts that are still outstanding, has increased by an astounding 110%, hitting a 30-day high of approximately $20 million, as reported by Coinglass. This points to an increase in the number of new market players entering FLOKI positions, which may be an indication of more price hikes happening in the future.


There has been a considerable increase in the daily trading volume of FLOKI, which is adding gasoline to the fire. From the end of March to the 15th of May, Santiment recorded a daily volume that was more than one billion dollars. This was the greatest level for FLOKI since then. The price has been driven up as a result of the spike in investor interest, which is shown by the heavy purchasing activity.



There is a bullish charge indicated by momentum indicators.

It is the performance of its primary momentum indicators that provides further support for the argument that a bullish FLOKI is appropriate. Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) are now located at 62.68 and 65.37, respectively, which is a comfortable distance above their respective neutral resistance lines. For a more straightforward explanation, these measurements indicate that the price momentum is pointing in the direction of more increases in the near run.

Additionally, the general market opinion toward FLOKI is not only good but also noteworthy. Investor interest has been enhanced as a result of increased trading volumes and a jump in social media mentions, which suggests that the cryptocurrency is gaining momentum not just among regular traders but also among institutional investors.

Several recent alliances and strategic advancements inside the FLOKI ecosystem are anticipated to be the driving force behind further expansion. The combination of these elements and the robust technical indicators paints a positive picture for the near-term performance of FLOKI, which offers the possibility of paving the way for a significant price rise.



On the other hand, hidden behind the seemingly flawless surface is a possible source of worry. The Chaikin Money Flow (CMF), which is an indicator that monitors the purchasing and selling pressure of an asset, offers a picture that is fairly pessimistic.

Maintaining a Negative Attitude
The price appreciation is not enough to change the fact that FLOKI's CMF is still firmly in the negative region, as it is now sitting at -0.11. The fact that this is the case shows that the purchasing pressure may be decreasing, despite the fact that the price is increasing.


Indicating a rise that is driven by short-term speculation rather than long-term investor confidence, this gap between price and purchasing pressure is sometimes seen as a harbinger of a future reversal.

The recent success of FLOKI is clearly excellent; yet, the dynamics that are going on under the surface indicate that the future may be unpredictable. The increase in open interest and trading volume is indicative of a frenzy in the market; yet, the negative CMF raises doubts about the rally's potential to continue for an extended period of time.


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