After a 14% increase in FLOKI over 24 hours, the following details are provided.
FLOKI continues to grow with strong market fundamentals, but will this change?
Technical indicators for FLOKI emphasize overbought conditions and indicate potential short-term risks.
- On-chain data and social dominance also reflect increased participation.
Floki [FLOKI] has made waves in the crypto space, increasing by 14.19% in the last 24 hours, reaching a price of $0.0001686 at the time of publication. With a staggering trading volume increase of over 147%, investors are questioning whether FLOKI can maintain its upward momentum or if a correction is on the horizon.
Technical Analysis: What Do the Indicators Say?
A closer look at the technical indicators shows that the 4-hour Relative Strength Index (RSI) stands at 82.56, clearly indicating overbought conditions. As a result, this could be interpreted as a sign of strong buying pressure that often points to potential market corrections.
However, it’s important to note that FLOKI’s price has consistently remained above key support levels while riding the upper Bollinger Bands (BB).
This indicates sustained bullish sentiment. Nevertheless, the excessive price increase outside the BB also signifies greater volatility, which traders should approach with caution.
Source: TradingView
On-Chain Data: Volume and Active Addresses Increase
Additionally, on-chain data highlights a significant growth in activity. Daily active addresses increased from 2,796 to 3,746, indicating strong interest in the token. Furthermore, according to a report by Coinglass, trading volume surged by 147% to $143.67 million, reflecting robust participation in FLOKI’s market movement.
Therefore, both metrics seem to reinforce the idea that FLOKI’s price increase may well be supported by strong fundamentals and user engagement. This surge in activity strongly suggests that FLOKI may have more room for growth.
Source: Santiment
Social Dominance: FLOKI’s Growing Presence in the Community
Social dominance has also played a crucial role in FLOKI’s current performance. FLOKI’s share of social conversations has increased to 0.149%, reflecting the growing voice of the community around the token. This rise in social sentiment is often associated with increased retail interest, which has historically fueled price increases.
However, it is essential to closely monitor social sentiment, as rapid changes can lead to volatility if traders start to take profits.
Source: Santiment
Long/Short Ratio: A Potential Shift in Market Sentiment?
Finally, examining the long/short ratio revealed a position of 51.23% versus 48.77%, indicating traders’ optimism. Consequently, the market appeared to lean bullish, although the close parity suggests a need for careful monitoring for any sudden changes.
Source: Coinglass
At the time of writing, FLOKI appeared to continue its short-term upward movement. Strong on-chain data, increased social dominance, and robust volume are signs of further growth.
However, traders should exercise caution due to the overbought technical indicators, which could lead to short-term corrections.
