FLOKI fell 26% this month: 3 alarming indicators

Yesterday, Floki (FLOKI) recorded one of the strongest declines in the market within 24 hours, losing 14% of its value and falling 26% over the past month as of the time of writing. However, in the past 24 hours, the price has rebounded by 4%, returning to the level of $0.00007958. Nevertheless, the sellers still maintain a clear control over the market. Although the price action has just surpassed the extended support zone, the bullish reversal signals remain quite weak.

In the context of strong fluctuations and many intertwining influencing factors, FLOKI is entering a crucial phase — requiring in-depth analysis to assess price prospects in the near future.

FLOKI approaches an important support zone: What will happen next?

Currently, FLOKI has surpassed the key support zone, fluctuating between 0.00007602 and 0.00007453 dollars. Market analysis shows that this support zone plays an important role in FLOKI's three previous price increases — each time it touched this zone led to significant rebounds.

Source: TradingViewHowever, the market structure this time is less optimistic. The overall trend is still leaning towards a fall, and investor confidence is weakening in both the spot market and the derivatives market.

History may repeat itself, but it doesn't always look the same

The open contract index (OI) — measures the number of outstanding FLOKI derivative contracts — continues to fall. In just the past 24 hours, this index has decreased by 17%, indicating that overall liquidity in the derivatives market is significantly declining.

Source: CoinGlassOn the other hand, the bearish sentiment towards FLOKI continues to increase, indicating the risk of further price falls.

Derivative data reflects weak market sentiment

Selling pressure seems to be widespread. The Accumulation/Distribution indicator records a level of -6.3 trillion, confirming that FLOKI is in a phase of dominance exit.

Source: TradingViewAdditionally, the Parabolic SAR indicator also supports this negative trend, as the dots have formed above the current price level. If more dots continue to appear, it will indicate that the selling volume is increasing in the market.

Finally, the MACD indicator has confirmed the formation of a death cross pattern. This pattern occurs when the green MACD line crosses below the orange signal line, signaling a high likelihood that prices will continue to fall sharply in the near future.

Source: TradingView## Can development activities support the price?

To cope with the current weakening trend, the FLOKI team has announced a five-week promotional campaign aimed at promoting its play-to-earn metaverse game. If this campaign is successful, it could reignite user interest and create support for the price.

However, if there is no actual increase in the level of acceptance, the current downward trend may continue — making the support zone vulnerable.

Minh Anh