Due to the ongoing sell-off in the crypto market, the FLOKI investors lost a major chunk of its gain obtained during the recovery phase. The sustained selling plunged the memecoin to the immediate support of $0.000036. For the past two weeks, the coin price has been resonating in a tight range, preparing for its next move.
Key technical points:
- The FLOKI buyers facing dynamic resistance from 20-day MA
- The intraday trading volume in the Floki Inu is $6.3 Million, indicating a 3% gain.
Source- Tradingview
On February 9th, FLOKI price turned down from the $0.00006 resistance, initiating a V-top reversal pattern. The altcoin plunged to the $0.0000361 support, registering a 40% loss. The buyers defended this support with vigor and prevented the price from further decline.
However, the buyers are struggling to surpass the immediate resistance at $0.000043, creating a narrow range in the technical chart. This consolidation period allows traders to take a short rest before they continue their rally.
The sustained selling has engulfed the 20 MA line, which now acts as dynamic resistance to the FLOKI price. Moreover, the downsloping 50 and 100-day MA indicates an overall bearish trend.
The recent retracement sank the Relative strength index(44) slope back to the bearish territory, indicating the sellers are still dominating the field.
Bullish Divergence Hints Upside Breakout From Range
Source- Tradingview
Over the last two weeks, the FLOKI price has been wavering between the $0.00006 and $0.000041 mark. Once the price breaches either of these levels, the crypto traders can expect the following rally.
The 4-hr Relative Strength index(50) shares a neutral sentiment. However, a bullish divergence in the indicator chart signals a better possibility for a bullish breakout.
Therefore, if the buyers breached the $0.000036 resistance, the traders would drive the coin to the $0.00006 mark.
Resistance levels- $0.000036 and $0.00006
Support levels-$0.000041 and $0.00002
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Source: https://coingape.com/markets/floki-inu-price-analysis-floki-buyers-defend-the-0-000036-support/