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Analyzing FLOKI’s Recovery Odds After Memecoin’s Price Drops to 3-Week-Low
FLOKI, the sixth-largest memecoin by market capitalization, has been affected by bearish pressures across the memecoin market, dropping its value to a three-week low of $0.000155. This sudden downturn in FLOKI’s price, which represents a 5% drop within a span of 24 hours, has sparked concerns among investors regarding the cryptocurrency’s recovery odds.
Recent data from Coinglass indicates that derivatives trading activity around FLOKI has been on the rise, with open interest increasing to $28 million. This surge in activity could be an indication of short sellers entering the market, as the long/short ratio reached a weekly low of 0.856. The large transaction volumes witnessed a decline of 14%, and large holder positions have remained stagnant.
However, despite this bleak outlook, there are some glimmers of hope. Data from IntoTheBlock reveals that whales have been unwilling to take advantage of the price drop, instead choosing to hold onto their tokens. This lack of buying pressure could potentially lead to a further decline in FLOKI’s value. On the other hand, it might also create an opportunity for FLOKI to bounce back as market participants may be deterred by the cryptocurrency’s current downtrend.
In terms of on-chain data, IntoTheBlock has also reported a slight uptick in large holder positions, which could signal that investors are looking to minimize their losses. Furthermore, there was an increase in network activity, which could potentially translate into long-term gains for FLOKI.
Source: ambcrypto.com
