Despite the 17.7 Billion token sell-off by the wallet yfimaxi.eth, FLOKI proved quite resilient, gaining 6% despite it. The unexpected price strength shows that growing demand was able to absorb the added supply
Whale Actions Spark Market Buzz as Analysts Share Bullish FLOKI Outlook
The wallet of yfimaxi.eth moved 17.7 Billion FLOKI tokens, valued at $2.56 Million, into Binance approximately nine hours ago. One thing is, the significant selloff would create downward pressure on the token’s price as the supply on the exchange increased.
Even with such a large sale, FLOKI’s price failed to budge and in fact saw a 6% gain for the same day. That resilience suggests that the new market demand was robust enough to soak up the inflow and that there was growing confidence in the token among both retail and institutional investors.
The signal it sends to the market is also quite strong. When a large wallet like yfimaxi.eth, who invested a lot in the token after the recent price rise, starts to show exit of the position, it could imply that that individual investor doesn’t trust that position for long.
Meanwhile, a bullish setup for FLOKI was spotted by technical analysts’ radar as the cryptocurrency breaks its way out of a falling wedge. According to the analysis by Captain Faibik, this breakout could usher in further upward momentum.
If FLOKI does break out of the falling wedge pattern, then it is expected to be followed by a 34.81% gain according to typical market expectations, with the token currently targeting the price of $0.00056.
Inverse Head and Shoulders Signal Uptrend for FLOKI
On a 4-hour timeframe also, it looks to be forming a bullish reversal pattern through an inverse head and shoulders formation. This pattern, called a three-dip pattern, consists of three consecutive dips with the middle one (the head) lower than the other two (the shoulders) and is usually seen as being a precursor to a price rally.
FLOKI’s recent breakout above the neckline, which is the horizontal line above, is a bullish sign and indicates that there may be an upward target if the breakout holds.
The breakout looks strong at the current price level of $0.0001745 as the average true range has increased, a measure of volatility. Currently, the ATR reads 0.0000079, and an increase in such price movement intensity generally indicates a rise in the market’s interest and activity.
The Awesome Oscillator is also on its way to positive territory, wherein counts to green bars, which could indicate a bullish move or the start of an uptrend.
If the bullish momentum keeps on, FLOKI could aim for further upside as technical forecasts show the ability to reach $0.0003. For traders, this level lines up with previous resistance that may be an entry point for Floki following its recent breakout.
Funding Rates Reflect Trader Volatility on FLOKI
In addition, the volume-weighted funding rate for FLOKI revealed swinging market sentiment as positive and negative rates oscillate.
Positive funding rates in green areas represented the fact that long positions are in favor, meaning that the market believes in the bullishness of the environment. Instead, the red areas, or negative funding rates, indicate a rise in short positions or traders betting FLOKI’s price will decline.
Funding rate shifts throughout September and October tracked FLOKI’s price movements, with both positive rates correlating with upward price trends and negative rates matching downtrends.
The volatility in funding rates is a result that traders are optimistic and cautious. The frequent shifts in sentiment demonstrate a delicate market environment where positions rapidly adjust based on price movement.
