FLOKI Open Interest Soars 87%: Is a Bull Run Imminent?
FLOKI has surged by 40% over the past week, reaching a 6-month high. This rally underscores significant market interest and support for the meme coin.
However, broader market conditions present ongoing challenges to FLOKI's price stability.
FLOKI's Price Momentum and Market Indicators
FLOKI's price surge is accompanied by an increase in open interest in the derivatives market. Over the last two days, open interest jumped by 87%, from $40 million to $75 million, suggesting growing investor excitement.
This spike indicates a heightened fear of missing out (FOMO), as traders aim to capitalize on potential gains.
A positive funding rate reinforces this trend, with long contracts dominating the market, signaling strong investor optimism for continued rallies.
FLOKI Open Interest. Source: Coinglass
The Market Value to Realized Value (MVRV) Ratio is currently at 32.62%, indicating that investors who purchased FLOKI in the past month are seeing profits of approximately 32%.
Historically, MVRV ratios in this range have often led to market reversals as investors begin to sell.
The 19% to 32% range for the MVRV Ratio is considered a “danger zone,” where profit-taking could trigger a price correction.
FLOKI's position in this zone suggests that its current rally may encounter resistance, and the risk of a reversal remains considerable.
FLOKI MVRV Ratio. Source: Santiment
FLOKI Price: Potential Scenarios
FLOKI is currently trading at $0.000135, up 38% over the last seven days. The meme coin is attempting to establish $0.000132 as a support level to sustain its recent gains.
If this support holds, FLOKI could advance toward $0.000148 in the near term.
Conversely, a shift in investor sentiment could lead to a price correction. Failure to hold the $0.000132 support may result in a drop to $0.000114, invalidating the bullish outlook.
FLOKI Price Analysis. Source: TradingView
On the upside, breaching the $0.000148 resistance could drive FLOKI higher, with the next target at $0.000167. A successful breakout above $0.000148 would challenge any bearish sentiment.