Summary
• Price declined from $0.00004109 to $0.00004047, forming bearish candlestick patterns like dark cloud cover and engulfing.
• Volume spiked during the decline, confirming bearish momentum despite RSI showing moderate overbought levels.
• Bollinger Bands narrowed before the drop, indicating a potential breakout, with price closing near the lower band.
FLOKI/Tether (FLOKIUSDT) opened at $0.00004103, hit a high of $0.00004109, and closed at $0.00004047, with a low of $0.00003929. Total volume was 47.5 billion units, and turnover was approximately $1,940,000.
Structure & Formations
Price formed multiple bearish patterns, including dark cloud covers and bearish engulfing candles during the sharp decline from $0.00004109 to under $0.0000405. A key support level appears to form around $0.00004000, with prior resistance now acting as dynamic support near $0.00004040–$0.00004060.
Technical Indicators
The 20-period and 50-period moving averages on the 5-minute chart both crossed below key price levels, confirming bearish momentum.
RSI rose into overbought territory (above 60) during the early rally, suggesting potential exhaustion. MACD showed bearish divergence, with a negative crossover confirming the downturn.
Volatility & Bands
Bollinger Bands experienced a contraction just before the sharp drop, suggesting a breakout was imminent. Price closed near the lower band at $0.00003929, indicating high volatility and a bearish bias in the short term.
Volume and Turnover
Volume surged during the decline, particularly in the candle that closed at $0.00004005 and $0.00003999, showing strong bearish conviction. Notional turnover mirrored the volume spikes, reinforcing the bearish confirmation.
Fibonacci Retracements
Recent 5-minute swings show price testing the 61.8% Fibonacci retracement level at $0.00004015, which failed to hold, suggesting further downward movement is likely. Daily Fibonacci levels from the prior week show $0.00003929 as a key support level, which could either hold or lead to a deeper correction.
FLOKI/Tether appears to be entering a period of consolidation following the sharp selloff, with bears in control. A retest of $0.00003929 could either stabilize the price or trigger a deeper pullback. Investors should monitor the 50-period moving average and RSI for early signs of a reversal, but bearish bias remains in the near term.
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