FLOKI Has Been Attempting to Recover From Recent Price Losses

FLOKI has been attempting to recover from recent price losses, but its efforts are hindered by weak investor support.

FLOKI, the meme coin known for its playful take on the cryptocurrency market, is still juggling the playful spirit of memes with the serious matter of investor support.

As the dust settles on recent price action, it appears that FLOKI’s recovery efforts are being hampered by weak investor confidence, despite a slight uptick in the market.

While the meme coin managed to eke out a small gain of 12% over the last 24 hours, this rally may be short-lived as short-term holders (STHs) are still in profit, setting the stage for potentially bearish market conditions.

MVRV Long/Short Difference Is Deeply Negative

The MVRV Long/Short Difference is currently showing a deep negative value of -40%, a strong indication that STHs are in profit. This finding is rather unusual, as STHs are typically more sensitive to price changes and tend to capitalize on the first signs of profit by selling.

Such selling pressure could exert significant downward pressure on the meme coin’s price, especially if a large portion of STHs decide to liquidate their holdings simultaneously.

The fact that the MVRV ratio is negative also suggests that FLOKI is at risk of seeing a sharper decline, as STHs are generally prone to selling quickly. When these investors take profits, it can lead to increased selling activity, further weakening the altcoin’s price and hindering any recovery attempts.

Relative Strength Index Remains in Bearish Zone

Looking at broader market conditions, the Relative Strength Index (RSI) for FLOKI is still below the neutral 50.0 mark, indicating that the momentum is not yet strong.

While the RSI has recovered slightly after being oversold, it remains in the bearish zone. This suggests that the market is not yet showing clear signs of a bullish reversal, leaving FLOKI vulnerable to further declines.

The lack of strong bullish momentum in the broader market is also contributing to FLOKI’s inability to sustain a recovery. While a reversal in the RSI could eventually trigger an uptrend, the current market sentiment and technical indicators are still too weak to signal a strong and sustained rally for the meme coin.

As the playful dust settles on recent price action, it appears that FLOKI’s recovery efforts are being hampered by weak investor confidence, despite a slight uptick in the market.

Currently trading at $0.00007121, FLOKI has seen a 12% increase over the last 24 hours. The meme coin is attempting to flip the $0.00007132 resistance level into support. However, this level has been difficult to break, and it is uncertain whether FLOKI will be able to sustain this momentum.

Based on current market conditions, FLOKI is likely to consolidate between the $0.00007132 and $0.00005903 levels. Even if the altcoin manages to flip $0.00007132 into support, it may struggle to rally further without more investor confidence. The price could remain stuck within this range for the foreseeable future.

To invalidate the bearish outlook, FLOKI must breach the $0.00009357 resistance and rise above $0.00011036. A successful break above these levels would signal a potential bullish trend for the meme coin, but this will require stronger investor support and a more favorable market environment.