It seems the FLOKI sellers aim to eliminate all the gains buyers made during February’s first week. The bearish reversal from the $0.00006 has recently slipped below the $0.000041 support, and the next target for sellers is the current lower low of $0.00003. Will bears continue the downtrend or bulls are planning a comeback?
Key technical points:
- The FLOKI buyers facing strong resistance from 20-day EMA
- The intraday trading volume in the FLOKI/USD is $6.1 Million, indicating a 27.8% gain.
FLOKI Buyers Trapped In A Retest Phase
Source- Tradingview
The FLOKI/USD pair has been stuck in a retest phase for the past four days. The previous day’s candles showed long higher price rejection, projecting the presence of intense supply. If sellers sustained below the $0.0000418 resistance, the coin would plunge to the $0.00003 support along with the threat of downtrend resumption.
On a contrary note, if buyers pushed the altcoin above the $0.0000418 mark. This fakeout will benefit buyers to rally towards the $0.00006 mark.
The ADX(17) slips lower due to the current consolidation. However, the slope could take an upturn if coin prices continue to fall, indicating the rise selling momentum.
On February 7th, FLOKI buyers gave a decisive breakout from the long-coming falling wedge pattern. The daily candle reached an overhead resistance level of $0.00006, indicating an 80% gain in less than a week.
Source- Tradingview
However, the sellers aggressively defended this resistance and rejected the FLOKI price immediately. A sustained decline has plugged the FLOKI price below the shared support of $0.0000445 and the 20-day EMA. The meme coin currently retests the breached support, looking for sufficient selling.
The recent retracement sank the Relative Strength Index(44) slope back to the bearish territory, indicating the sellers are still dominating the field.
- Resistance levels- $0.0000418 and $0.00006
- Support levels-$0.00003 and $0.00002
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