Floki has experienced a significant 40% rally in the past week, pushing the meme coin to a six-month height. Altcoin prices were on an upward trajectory, reflecting strong interest and support from the market.
However, while Floki has attracted attention, the overall market conditions still pose challenges to Altcoin’s price stability.
Floki faces danger
The surge in Floki prices has seen a significant increase in open interest in the derivatives market. Over the past two days, Open Interes has surged 87% from $40 million to $75 million, indicating Meme Coin’s excitement and increased investor interest.
This rapid rise in open interest reflects the growing sense of fear of overlooked (FOMO) as traders flock to exploit potential profits.
Furthermore, positive funding rates further confirm this trend, indicating that longer contracts dominate the market. This is a clear indication of investor optimism and expectations that Floki will continue the rally.
There’s a mix of broader macro momentum behind Floki’s recent profits. The MVRV (realized value from market value) ratio is currently at 32.62%, indicating that investors who purchased Floki in the past month are earning 32%.
While this indicates positive market sentiment, past cases of MVRV ratios have often resulted in a reversal of reaching this range.
The range of 19% to 32% of MVRV ratios is considered a “danger zone” as many traders tend to make profits and can lead to price adjustments.
The presence of Floki in this danger zone indicates that current gatherings could face resistance. The market was bullish, but the risk of a reversal remains important.
Can Floki Price bounce back?
Floki’s prices currently trade at $0.000135, up 38% over the past seven days. Meme Coin is trying to secure $0.000132 for support floors. This is important to maintain recent profits.
If this level of support is achieved, Floki could push another $0.000148 over the next few days.
However, if investors’ sentiment changes and traders start selling shares held, Floki’s price could experience corrections. If support fails at $0.000132, Altcoin could drop to $0.000114, invalidating bullish papers and erasing recent profits.
On the other hand, if Floki can break the $0.000148 resistance, he could push further, with his next goal being $0.000167. A successful breakout past $0.000148 suggests that Memecoin has invalidated the bearish paper.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
