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Analyzing FLOKI’s Recovery Odds After Memecoin’s Price Drops to 3-Week-Low
FLOKI’s recent plunge to a three-week low has raised concerns about its potential for a turnaround. With the cryptocurrency trading at $0.000155, investors are eager to know if this is an opportunity to buy or time to sell.
As we delve into the data, it becomes clear that FLOKI has entered a long-term downtrend following the bearish crossover of the 50-day Simple Moving Average (SMA) below the 150-day SMA. This development could be detrimental for short sellers as they continue to fuel the selling pressure, pushing FLOKI’s price lower.
Despite this bleak outlook, there is still room for optimism. We have seen a slight uptick in large holder positions on IntoTheBlock, which may suggest that whales are unwilling to buy the dip. However, large transaction volumes have dropped by 14%, indicating that traders are hesitant to participate in the market. This hesitation could lead to further selling pressure.
On the other hand, a short squeeze might be looming as we witness a surge in short positions across the Coinglass data. The long/short ratio has approached a weekly low of 0.856. Should FLOKI suddenly rise, it is possible that these aggressive short sellers will rush to close their positions, resulting in an unexpected buying frenzy.
The key takeaway here is that we cannot rule out the possibility of a surprise recovery entirely. Although there are no concrete indicators suggesting this, there has been a slight growth in network activity, according to IntoTheBlock. This could be a sign of increased interest or even a potential bottoming process.
For now, it appears that FLOKI’s price will continue to slide as whales and traders alike choose not to invest. However, should the market sentiment shift towards optimism, we might just see an unexpected turnaround.
Source: ambcrypto.com
