- FLOKI was down by more than 22% in the last seven days.
- Few metrics looked bullish but indicators suggested otherwise.
The last week was not profitable for FLOKI investors as the memecoin’s value dropped by double digits. However, investors must not lose hope yet as there were chances of FLOKI rebounding from a critical support zone, allowing it to register green on its price chart soon.
FLOKI is bleeding
According to CoinMarketCap, the memecoin’s value sank by more than 22% in the last seven days. In fact, in the last 24 hours alone FLOKI’s price dropped by over 4.5%. At the time of writing, the meme coin was trading at $0.0001896 with a market capitalization of over $1.8 billion.
The negative price action took a toll on investors’ confidence in the memecoin as its weighted sentiment dropped sharply. However, its social volume remained high, reflecting its popularity in the crypto space.
Source: Santiment
Nonetheless, CryptoBull, a popular crypto analyst, recently posted a tweet highlighting a possible bull signal for FLOKI. As per the tweet, the coin has a strong support near the $0.000172 mark.
If its value drops to that mark and successfully tests it, then a bull rally could be expected. To be precise, a rebound from the support zone might also allow FLOKI to go above its March high, which looked pretty ambitious.
Is a bull rally inevitable?
Though the analysis mentioned FLOKI touching its support before beginning a bull rally, things might turn in investors’ favor sooner than that.
AMBCrypto’s analysis of Santiment’s data revealed that after a spike, the memecoin’s network to value ratio registered a sharp drop. A decline in the metric means that an asset is undervalued, increasing the chances of a price uptick.
Its open interest fell along with its price, which also hinted at a trend reversal in the coming days.
At press time, FLOKI’s MVRV ratio had a value of -22. Such low MVRV ratio often indicated a trend reversal, further increasing the chances of a bull rally in the coming days.
Source: Santiment
To better understand which way FLOKI was headed, AMBCrypto checked its daily chart. We found that unlike metrics, market indicators suggested that FLOKI might touch its support near $0.000172 before initiating a bull rally.
Realistic or not, here’s FLOKI market cap in BTC‘s terms
For instance, its MACD displayed a bearish upperhand in the market. Moreover, the Money Flow Index (MFI) also registered a downtick, indicating that the memecoin’s value might plummet further.
If FLOKI’s value drops, it will be interesting to see whether it manages to test the key support level.
Source: TradingView
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