FLOKI’s possible upside is very high, but it needs to negotiate this hurdle.
- FLOKI could see a 25% recovery rebound if market sentiment improves Whales dumping their holdings could derail this recovery
Among the market’s top memecoins, Floki Inu [FLOKI] saw the least price relief in the last 24 hours. FLOKI jumped slightly by 1.5%, alongside PEPE and dogwifhat [WIF], but BONK and Dogecoin [DOGE] rallied by 6% and 4%, respectively.
This suggested that the memecoins might not rally equally if the relief rally extends to a new week. What does that mean for FLOKI though?
Can FLOKI reverse its recent 20% losses?
Source: FLOKI/USDT, TradingView
FLOKI lost over 20% of its value between 22 July and 25 July, dropping from $0.0002 to $0.00016. However, the memecoin stabilized near the key support level and could attempt to reverse its losses.
A Fibonacci retracement tool (yellow) was placed between its June highs and April lows. Based on the tool, last week’s drop eased near the 78.6% Fib level ($0.00016) and the 20-day SMA (Simple Moving Average).
By defending the 20-day SMA, the memecoin seemed poised to climb higher and reverse last week’s losses. If so happens, a 25% potential gain would be feasible if the price hits the next immediate target at the 61.8% Fib level. A strong rebound to the 50% Fib level would tip over 40% recovery gains.
Additionally, key price chart technical indicators supported the aforementioned recovery outlook. FLOKI’s capital inflows were stagnant, but above average levels, as shown by the CMF (Chaikin Money Flow).
However, the RSI (Relative Strength Index) revealed that the demand was flat as of press time.
That being said, the demand dynamic on the spot market could change amidst a surge in open interest rates (OI) in the past 24 hours.
As per Coinglass data, liquidity spiked into memecoins on Sunday, and FLOKI recorded significant market interest too. It meant that the derivatives market was bullish on FLOKI too.
Are some whales dumping FLOKI?
Source: Santiment
Despite the likely bullish setup for FLOKI, the likely recovery could attract massive profit-making. According to Santiment, three categories of FLOKI whales, especially the cohort with over 1 million FLOKI holdings, have been dumping the memecoin.
Read Floki Inu [FLOKI] Price Prediction 2024-2025
This could put pressure on the recovery and drag FLOKI, especially if this week’s post-Fed rate decision doesn’t favor the market sentiment.
In short, FLOKI seemed to have upside potential and likely 20% gains at stake. However, whales’ offloading could threaten the recovery prospects.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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