The rising momentum of Bitcoin (BTC), the leading cryptocurrency, has also affected some popular altcoins. Floki (FLOKI) and Pepe (PEPE) showed significant performance last week, with double-digit gains of 37% and 12% respectively. Additionally, Shiba Inu (SHIB) and Dogecoin (DOGE) achieved single-digit weekly gains of 2% and 4% respectively during the same period.
A recent report revealed that Floki’s popularity and daily activity surpassed other meme tokens, partially explaining its impressive price performance. However, the token faced headwinds. The movement above $0.000025 caused a reversal of the losses Floki had experienced since mid-August.
In particular, the $0.000025 level represented an invalidated bearish order block (OB) on the 12-hour chart. At the time of writing, this level had been retested as support and was a critical level for an upward trend.
However, the price action encountered resistance at the $0.00003 level, which was a weekly bearish OB formed on May 22, 2023. The higher timeframe barrier could be relevant for further upward expectations unless Bitcoin (BTC) drops to $37,000.
Contrary to the assumption, if Floki falls below the $0.000025 support, sellers may gain market advantage. The next support to the south was at $0.00001988. Additionally, the demand and buying pressure in Floki’s spot market favored the bulls, as indicated by the rising OBV and RSI.
However, the lack of significant capital inflows due to the CMF’s near-zero decline was a concerning trend. The negative Open Interest (OI) weighted funding rate could imply that the bearish trend is affecting the Floki market, causing investors to reconsider the token.
The decline in Santiment’s weighted sentiment metric confirmed a decrease in positive sentiment. Additionally, network growth exhibited a sharp decline, indicating a decline in Floki’s appeal. Despite some bearish readings, Floki has been in a steady accumulation phase since September, as shown by the rising 90-day average cryptocurrency age. Therefore, if BTC remains bullish, buyers may consider $0.000025 as a significant level.