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Floki Inu (FLOKI) is going through a tough time due to downtrends in the market, making buyers nervous. Some predictions indicate that the price could rise by 220%, reaching $0.00044 by November 26, 2024. However, new research shows that short-term technical signs are pointing in a different direction.
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Cryptocurrency analyst Alan Santana pointed out that the token’s current sideways movement could signal further declines. Since peaking in March 2024, FLOKI has been stuck in a downtrend, unable to regain its previous momentum. After a brief recovery in June, the price stagnated, reflecting a change in market sentiment.
According to Santana, traders should “prepare for the crash” given the current negative market dynamics, based on his review of memecoin price action.
#Altcoins | #FLOKI ✴️ Floki Inu Major Drop now imminent: prepare to crash!
I remember we traded Floki Inu successfully on the bull side, it was a great adventure, remember that? Market conditions have changed.
Notice the huge green candles in February 2024, this is approximately… pic.twitter.com/5OrScWHNeb
– Alan Santana (@lamatrades1111) October 27, 2024
Analyze current dynamics
Current technical indicators show a worrying trend for Floki Inu. It appears that the token is going through a long consolidation phase, which can be described as the “distribution phase,” and that the sellers are in charge.
Heavy trading volumes during previous bullish moves, particularly in February and March, have turned into massive sell-offs in recent weeks. Currently, FLOKI is trading at $0.0001315, down 1.20% over the past day, with many closely watching key support levels.
Two very important support areas have developed. If the downtrend persists, analysts believe that FLOKI would retest the initial support level at $0.00009557.
In the event of a breakout, the token could drop to a lowest possible value of $0.00004200. For those clinging to their chips, this situation raises the question of whether it is time to change positions.
Fibonacci Levels Suggest Weakness
Another technical indicator that has negative sentiment is the Fibonacci retracement level. More importantly, for FLOKI to dominate the market, it was consistently rejected at the 0.618 and 0.786 levels.
Persistent price rejection here indicates that positive sentiment is being crushed. Price action shows that FLOKI will drop below its current trading range, which also puts more pressure on holders.
Attention investors
Faced with these contradictory messages, investors must remain extremely cautious. Since the immediate future looks challenging, many predictions indicate that there will be an upward trend and investors could reach a price that could reach $0.00044 by the end of November. However, many traders remain skeptical given the current sentiment.
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The Fear & Greed Index sits at 69, marking a level of greed in the market. This is essentially what leads to slowdowns. For the last month, FLOKI saw its green days at 43%, volatility rate at 7.48%. Before making a decision, it might be prudent for individuals looking to enter the market to wait for clearer indications of positive sentiment. When it comes to cryptocurrency, timing can be crucial.
Featured image from Pexels, chart from TradingView
