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FLOKI has recently experienced a 12% rise; however, the selling pressure from short-term holders (STHs) with a negative MVRV ratio poses risks to its price stability.
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The cryptocurrency struggles to break the $0.00007132 resistance, and may consolidate between $0.00007132 and $0.00005903 unless investor support strengthens.
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A movement above the $0.00009357 and $0.00011036 levels would undermine the bearish outlook, indicating potential for a recovery.
FLOKI is attempting to recover from recent losses but faces challenges due to weak investor support and potential selling pressure from short-term holders.
FLOKI Investors Are Bearish
The MVRV Long/Short Difference for FLOKI is currently deeply negative at -40%, indicating profitability for short-term holders. This presents a concerning scenario for FLOKI’s price as STHs are likely to sell at any signs of profits. Should these holders choose to liquidate their positions, FLOKI may encounter significant downward pressure.
The negative MVRV ratio implies that FLOKI could see a sharp decline, with STHs prone to quick selling when they take profits. This selling activity could intensify, further weakening FLOKI’s price and obstructing recovery attempts.
FLOKI MVRV Long/Short Difference. Source: Santiment
A review of broader market conditions reveals that the Relative Strength Index (RSI) for FLOKI remains below the neutral mark of 50.0. Although the RSI has shown slight recovery after prior overselling, it is still within a bearish zone. This indicates a lack of clear bullish sentiment in the market, leaving FLOKI susceptible to further declines.
The weak overall market momentum is a contributing factor to FLOKI’s struggles in maintaining recovery. Although a reversal in the RSI could potentially trigger an upward trend, current market sentiment and technical indicators lack strength to suggest a robust rally for the meme coin.
FLOKI RSI. Source: TradingView
FLOKI Price Recovery May Not Be Certain
At present, FLOKI is trading at $0.00007121, having noted a 12% increase over the past 24 hours. The meme coin attempts to convert the $0.00007132 resistance level into support. Nonetheless, this level has proven challenging to surpass, casting doubt on the sustainability of this momentum.
Considering existing market conditions, FLOKI is likely to consolidate within the $0.00007132 and $0.00005903 levels. Even if the altcoin manages to convert the $0.00007132 level into support, future rallies may face complications due to a lack of investor confidence, potentially keeping the price within this range for an extended period.
FLOKI Price Analysis. Source: TradingView
To nullify the bearish outlook, FLOKI needs to breach the $0.00009357 resistance and rise above $0.00011036. A successful breakout beyond these levels would signal a potential bullish trend for the meme coin. However, this would require enhanced investor backing and a more favorable market context.
Conclusion
In summary, FLOKI’s recent gains are overshadowed by significant risks stemming from short-term holders’ selling pressure and weak overall market conditions. The negative MVRV and below-neutral RSI levels suggest that despite a brief uptick, the downtrend could persist unless critical resistance levels are surpassed, accompanied by increased investor confidence.
