FLOKI has found itself among the biggest losers in the crypto market, shedding 11.43% of its value in the last 24 hours. This sharp drop has extended its weekly losses to 23%, raising concerns about further downside pressure. The latest market analysis suggests that selling pressure could intensify as traders lose momentum and bearish sentiment takes control.
Liquidity Clusters and Derivative Traders Fuel Downtrend
A closer look at the FLOKI/USDT liquidation heatmap reveals significant liquidity clusters below the current price of $0.00006075. Liquidity clusters represent unexecuted orders in the derivatives market, which act as price magnets pulling FLOKI downward. According to Coinglass data, these clusters extend as low as $0.000058147—a level with little to no liquidity, potentially marking a key rebound zone for the memecoin.
Derivative traders have played a crucial role in FLOKI’s decline. The long-to-short ratio, which measures the balance between buying and selling activity, stands at a bearish 0.7828—well below the neutral threshold of 1. This indicates a dominance of sellers over buyers, further confirming the downtrend.
Moreover, Open Interest (OI), which reflects the total number of unsettled contracts in the market, has also dropped. Currently, just $14.76 million worth of FLOKI derivative contracts remain open, largely due to long positions being liquidated. Additionally, the OI-weighted funding rate is at -0.0143%, marking the most bearish sentiment seen since early March.
Spot Market Continues to Bleed
FLOKI’s troubles aren’t limited to the derivatives market. In the spot market, traders have been consistently selling their holdings for over three weeks. Since March 10, an estimated $1.75 million worth of FLOKI has been offloaded, exacerbating the bearish outlook. If this selling trend continues, it could accelerate FLOKI’s downward trajectory.
For now, FLOKI remains firmly in a bearish zone, with both derivative and spot traders fueling its decline. Unless a strong reversal occurs near the liquidity clusters, the memecoin could see further losses in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
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