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FLOKI Price Falls 21% in a Day, Open Interest Drops by a Fifth

FLOKI price after a long while of consistent drawdown, is potentially looking at additional losses over the coming days.

This is because the rising pessimism among investors could harm the attempts at stabilizing the meme coin.

FLOKI Sees Bearish Cues

FLOKI price could decline as the broader market cues and investors step back. Signs of the same are visible in the Open Interest and the Relative Strength Index (RSI).

FLOKI’s Open Interest experienced a sharp decline, falling by $4 million in just one day. This drop represents a substantial reduction, amounting to one-fifth of its previous total of $20 million. Such a significant decrease in Open Interest highlights a shift in market sentiment.

The rapid decline in FLOKI’s Open Interest suggests that traders and investors are reevaluating their positions. A 20% reduction in the OI often indicates a decrease in speculative activity and confidence, which can have broader implications for the asset’s market dynamics.

FLOKI Open Interest. Source: Coinglass

Additionally, FLOKI’s RSI has failed to breach the neutral line. The RSI is a crucial momentum indicator, and its inability to move past this level is a clear sign that bearish sentiments continue to prevail. This suggests that the market is struggling to gain upward momentum.

The combination of a significant drop in Open Interest and a bearish RSI underscores the challenges FLOKI faces in reversing its current trend.

Read More: What Are Meme Coins?

Floki RSI. Source: TradingView

These indicators together suggest that bearish cues are dominating the market, and FLOKI may continue to experience downward pressure in the near term.

FLOKI Price Prediction: Watching Key Levels

FLOKI price declined by more than 21% in the last 24 hours, pulling the meme coin from $0.0001856 to $0.0001459. The altcoin is now close to its last barrier at $0.0001326, falling through, which could lead to a freefall with the price declining below $0.0001000.

The aforementioned cues are not too positive either, suggesting a drawdown could take place anytime soon.

On the other hand, if FLOKI price bounces back from $0.0001484, the bearish thesis could be invalidated. This would give the meme coine enough boost to reclaim $0.0001856 as a support level to eventually breach $0.0002000.

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