FLOKI bears tighten grip – Why recovery may take time

• FLOKI investors can wait for a consolidation before looking to buy.
• The nearby liquidity cluster at $0.000086 could see another price dip.

FLOKI [FLOKI] has fallen 58% since the early January highs at $0.000201. The A/D indicator noted persistent selling pressure alongside the price losses, making a quick recovery unlikely.

The altcoin market shed 27.5% of its market cap in the past two days but has seen a bounce from the local lows.

FLOKI to consolidate around $0.000083?

Source: FLOKI/USDT on TradingView

The memecoin could not test the highs it made in March and had receded from the $0.00028 resistance zone in December. The flash crash of the past few hours took the token below the lows from early August.

The next support zone was at $0.00005375, roughly 35% below market prices. The A/D indicator confirmed the firm selling pressure in recent months. Hence, a recovery from the recent losses was unlikely to be quick.

The 20 and 50-period moving averages were dynamic overhead resistances. They showcased the bearish market structure of FLOKI. The $0.000135 level, almost 62% above current prices, was the most recent lower high.

Source: Coinglass

The long-term bias was strongly bearish. The lack of buying pressure meant FLOKI might need a period of consolidation around current lows, or further south, before it can attempt a recovery.

The 24-hour liquidation heatmap showed that $0.0001 and $0.000117 were overhead magnetic zones, but they were a long way away from current prices.

Traders should be prepared for some consolidation around $0.000077 and $0.000083, and potentially further lows if Bitcoin [BTC] is unable to hold the $92k support zone.

Source: Coinglass

The 24-hour liquidation map showed that the short liquidations had greater liquidity. In turn, this meant that a move upward was more likely in the short term.

Realistic or not, here’s FLOKI’s market cap in BTC’s terms

The $0.000086 zone could be tested before another bearish move.

The market sentiment is extremely fearful, and further losses can’t be ruled out. Investors wanting to buy could wait for a few days for the waters to clear.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion