Let’s take a look at the current price forecast for Floki Inu (FLOKI), paying particular attention to critical support and resistance levels.
We’ve looked at current bearish trends and potential reversal signals to try to determine the outlook for the popular softcoin Floki Inu.
Floki Inu Technical Analysis
Analysis of the daily schedule
For a day technical schedule Floki Inu shows a significant volatility after hitting an all-time high of $0.00035. The subsequent 54% drop from June 5 to now was driven by several key technical factors.
We have previously noted that Floki’s price may collapse after breaking through key support levels.
The dark red baseline of the Ishimak cloud served as a critical support level during the rally to $0.00035. However, on June 7, the price fell below this line, signaling a change in market sentiment. This was the catalyst for further decline.
The price is now testing the 200-day EMA (green color), a significant level of support on the daily chart. Historically, the 200 EMA is considered an important long-term indicator. A break below it could lead to increased volatility and a further drop to $0.00015.
The nearest support levels are $0.000165 and $0.000157. If they fail, the next critical support will come into play at $0.00010. Meanwhile, FLOKI needs to recapture the $0.000188 level to initiate a significant bullish reversal.
Analysis of the 4-hour chart
The 4-hour chart provides a more detailed view of FLOKI’s current price action.
Earlier, the price managed to break below the 50-day moving average. This breakout was an important bearish signal and was confirmed by the following price dynamics.
The red baseline of the 4-hour Ishimak cloud now acts as a strong resistance level. Price tested this line but was unable to break above it. As a result, the downward pressure on the steam was preserved.
The price broke below the 50, 100 and 200 EMAs on the 4-hour chart, reinforcing the bearish outlook. The coin is also trading below the Ishimak cloud on the 4-hour chart, indicating strong downward momentum.
On the daily and 4-hour charts, the RSI is in oversold territory. This is a signal that bear pressure may be excessive. However, confirmation from other indicators is necessary for a decisive reversal.
Strategic recommendations
Breakthrough of critical support levels and moving averages, combined with the fact that the price is below the Ishimak cloud on the daily and 4-hour charts, indicates bearish sentiment. Social media and trader forums reflect cautious views; many traders take a wait-and-see approach.
For any significant bullish reversal, FLOKI price needs to break above $0.000188 (baseline of the 4-hour Ishimak cloud). A sustained break of this level could change the mood of the market and lead to a rally to the $0.000237 resistance level and above.
Short-term traders should consider near-term stop loss levels to reduce risks. If the price finds support near the current levels, it will have the potential to bounce back.
Long-term investors should assess the broader market context and macroeconomic factors before significantly changing the size of their holdings in an asset. Given the current volatility, it may be wise to wait for clear signs of a trend reversal before adding to positions without increasing risk.
Agreed I’m doing the Trust project, this analytical article is purely informative and cannot be considered as financial or investment advice. BeInCrypto’s policy is to provide quality and truthful information, however market conditions remain unpredictable. BeInCrypto encourages readers to independently verify the information and consult with a professional before making any financial decisions based on this content.