Market
Will Floki (FLOKI) Manage to Chart a New 2024 High Soon?
Floki’s (FLOKI) price rise impressed its investors, but this could be the extent of the rally as the meme coin prepares for a decline.
Profit-taking and shifting market sentiment could drive the price down in the next few trading sessions.
Floki Holders Realize Gains
Floki’s price is close to the year-to-date highs noted in March, but the probability of the altcoin forming new highs is bleak. This is because the FLOKI holders are very likely to book profits.
The Market Value to Realized Value (MVRV) Ratio, which assesses investor profit or loss, indicates this. Floki’s 30-day MVRV sits at 46%, signaling profit and potentially prompting selling. Historically, FLOKI corrections occur within the 12% to 54% MVRV range, labeling it a risk zone.
Additionally, the rally did not leave much room for further growth, as the rally saturated the market’s existing bullishness. The Relative Strength Index (RSI) verifies this.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements, helping to identify overbought or oversold conditions. It ranges from 0 to 100, with values above 70 indicating potential overbought conditions and below 30 indicating potential oversold conditions.
At the time of writing, the meme coin has already entered the overbought zone above 70.0. This zone is synonymous with corrections, and the last time FLOKI entered this zone was at the 2024 high.
Read More: What Are Meme Coins?
Thus, the chances of a price decline are rising by the day.
FLOKI Price Prediction: Downfall Awaits
Floki’s price trading at $0.000264 managed to breach the barrier at $0.000250, but it may not be able to sustain it. The 16% rise from the last day could be erased if FLOKI loses support at $0.000263. Consequently, the price could fall back to $0.000250 or lower towards $0.000218.
Read More: 7 Hot Meme Coins and Altcoins that are Trending in 2024
But if the bullishness does not saturate and Floki’s investors don’t sell so soon, it could rise further. The meme coin could breach past the resistance at $0.000277 to invalidate the bearish thesis.
However, in any case, a new year-to-date high as that would warrant another 20% rise.
Disclaimer
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