- Asset bounced off a significant support zone on the chart, bringing two price targets into focus
- Market participants have been largely bullish, with the exception of some spot traders who have been selling
FLOKI recorded gains of 5.64% in the last 24 hours, with the same adding to its impressive monthly performance of 23%.
That’s not all though. Especially as analysis indicated that the asset continues to maintain an uptrend on the charts, one supported by a hike in positive sentiment across the broader market.
Key support levels and its impact on price action
FLOKI recently traded into a crucial support level on the chart, one which had previously served as resistance.
This support zone at $0.00009474 had previously forced a minor pullback. After breaking above this resistance, FLOKI’s return to the zone triggered a slight rally on the charts.
Source: TradingView
However, despite this move, the asset is yet to print a higher high, which keeps a potential bearish scenario in play.
To fully invalidate the bearish outlook, FLOKI must break above its previous high at $0.00012359 and close a daily candle above this level.
If the asset crosses that threshold, the next target would likely be $0.00014577, where it may encounter another concentration of sell orders.
Will FLOKI break into a new high?
Sentiment around this possibility remains divided, with two distinct market scenarios unfolding.
In the Futures market, retail investors have been exhibiting confidence. Both Open Interest and buying volume have continued to surge too.
At the time of writing, FLOKI’s Open Interest—measuring the total value of unsettled derivative contracts—had risen by 12.28% to $27.53 million.
Source: Coinglass
At press time, the long-to-short ratio of 1.004 indicated that most of these open contracts were from long traders who expect the asset’s price to rally further.
Meanwhile, in the spot market, traders have been selling the asset. Exchange netflow data turned positive, with approximately $741,000 worth of FLOKI sold in the past 24 hours.
This selling may be temporary though, as some investors have been be taking profits following recent price gains.
However, if selling pressure extends, it could reverse FLOKI’s short-term gains and stall the upward momentum seen in the last 24 hours.
Investor sentiment supports the bullish case
Investor sentiment data from CoinMarketCap highlighted a growing belief in a sustained rally.
At press time, investor sentiment climbed to over 74%, with the same recovering from a brief downtrend the previous day.
Source: CoinMarketCap
If this trend continues, it would mean that the recent sell-off in the spot market is likely temporary. It would also mean that FLOKI remains well-positioned to continue its rally.
