- FLOKI has fallen below a key support level.
- Key technical indicators point to the possibility of a further price decline.
Floki Inu [FLOKI] broke the bottom line of its ascending channel and closed below support on June 11, AMBCrypto found.
At the time of writing, the meme coin was exchanging hands at $0.00023, having lost 28% of its value in the past seven days, according to CoinMarketCap.
FLOKI started moving within the ascending channel on April 13, when its price staged a rally. This channel is usually formed when an asset’s price movement consistently creates higher highs and higher lows.
However, on June 5, FLOKI’s price rose to an all-time high of $0.00035 and has since started to decline. It showed a downtrend towards the lower line of the channel, which had formed support at $0.00025.
On June 11, the token’s price fell below support and closed at $0.00023.
More declines on the horizon?
AMBCrypto reviewed some key indicators and found that they hinted at the possibility of a further decline in FLOKI’s value.
For example, the key momentum indicators were below their respective center lines. FLOKI’s Relative Strength Index (RSI) was 46.55, while the Money Flow Index (MFI) was 46.32.
These indicators identify overbought or oversold conditions in a market by measuring the momentum and changes in an asset’s price movements.
Based on their values at the time of writing, FLOKI’s RSI and MFI suggested that selling pressure was greater than buying activity.
The meme coin’s negative Chaikin Money Flow (CMF) also confirmed this. This indicator measures how money flows in and out of an asset.
A negative CMF value indicates market weakness, indicating increased liquidity exit. This is a bearish sign and traders interpret this as a harbinger of a further price decline.
At the time of writing, FLOKI’s CMF was -0.04.
Furthermore, FLOKI’s Aroon Down Line (blue) confirmed the strength of its current downtrend. At the time of going to press this was at 100%.
This indicator measures the strength of an asset’s price movement and identifies potential reversal points.
When the downline is near 100%, the downtrend is strong and the most recent low has been reached relatively recently.
Source: TradingView
Realistic or not, here is FLOKI’s market cap in DOGE terms
If this trend continues, FLOKI’s price may fall below the $0.0002 price area to exchange hands at $0.0001.
Source: TradingView
However, if this is debunked and new demand for the meme coin rises, FLOKI’s price could rise towards support at $0.00025 and above.