- Floki Inu shows a bearish divergence, hinting at a possible upcoming correction, mirroring early March’s trend.
- Earl of FrunkPuppy’s tweet highlights FLOKI’s significant lead in the meme coin surge, with a 746% monthly increase.
The cryptocurrency market has always been a realm of high volatility and speculative investment, but few coins have captured the attention of investors quite like Floki Inu (FLOKI).
Previously, FLOKI experienced a significant boom, as the community’s overwhelming support for a token burning initiative fueled investor interest and drove up the coin’s value, as previously reported by ETHNews.
Recently, the price of FLOKI has been on a noticeable upward trajectory, sparking discussions and speculations about the sustainability of this growth amidst the underlying signs of potential downturns.
Analyzing FLOKI Bearish Divergence: A Technical Perspective
At the heart of the analysis is the notable bearish divergence observed in the one-hour time frame for Floki Inu. This pattern mirrors the market behavior witnessed in early March, where despite the coin setting up higher highs, momentum indicators like the Relative Strength Index (RSI) painted a contrasting picture with lower lows.
Historically, such divergences have preluded significant price corrections, and FLOKI was no exception, undergoing a 48% correction shortly after. This correction was notably triggered after sweeping past a critical swing low at $0.000105, which then surprisingly pivoted to an almost 80% price surge within a mere 13 hours.
Given the recurrence of such a bearish divergence, market analysts are bracing for a potential repeat of history. This anticipation is further cemented by identifying two key swing lows at $0.000245 and $0.000216, respectively, which serve as potential targets for the impending correction.
The proximity of these targets to the current price level adds a layer of caution to the optimistic outlook held by some investors.
Despite the looming shadows of a downturn, the overall bullish market sentiment could turn these corrections into lucrative buying opportunities.
This sentiment, however, is tempered by the current market dynamics, where most altcoins are experiencing a period of stagnation, indicating a broader market uncertainty that could influence FLOKI’s trajectory.
Should the market conditions evolve favorably, with FLOKI closing above a critical swing high and a concurrent rise in the RSI, the bearish outlook could be invalidated, potentially triggering a 14% rally towards $0.000350.
Meme Coin Mania: Recent Performances
The recent performance of meme coins, including FLOKI, has sparked considerable interest within the crypto community. A notable mention came from Earl of FrunkPuppy, a popular meme coin enthusiast, whose tweet highlighted the astonishing performances of meme coins over the past month.
According to the tweet, FLOKI led the charge with an astounding 746% increase, followed closely by PEPE with a 709% rise, and WIF trailing with a 553% gain. This surge in interest and investment in meme coins like FLOKI underscores the speculative nature of the crypto market and the potential for significant returns amidst high risks.
However, the potential for an uptrend in FLOKI’s price remains contingent on several factors, including market volatility and a shift in investor sentiment.
In a previous ETHNews report, there was a WIF investor who was able to turn an investment worth $310 into $1.4 million. This reflects how high the hype around memecoin is, it is predicted that it will not end soon.
At the time of writing, the price of FLOKI has rose 4.00% in the last 24 hours, reaching a price of $0.0002791. This represents an increase of 83.06% over the past 7 days.