Key Takeaways
What sparked FLOKI’s bull trap?
The bullish move for Bitcoin gave the altcoin market short-term confidence, and its quick retreat swung the sentiment bearishly, taking FLOKI traders on a volatile ride.
What’s next for FLOKI?
The on-chain metrics did not reveal significant accumulation from holders. Combined with its recent bearish momentum, bulls should not bet on a recovery just yet.
The Open Interest behind FLOKI [FLOKI] saw a triple-digit percentage jump on the 21st of October.
Together with sizeable derivative inflows, the signs appeared to point toward strong bullish momentum, but AMBCrypto reported that a bull trap for FLOKI was possible.
The memecoin did indeed see its short-term bullishness fade after the 40% rally. In the 36 hours prior to the time of writing, FLOKI has shed 13.4% in value, failing to scale the local supply zone at $0.000084.
Source: Axel Adler Jr on X
The rejection came on the back of heightened volatility for Bitcoin [BTC]. Crypto analyst Axel Adler Jr observed that the Bitcoin volatility index rose above 95% for the third time within a month.
It was a warning sign that traders should expect sharp price moves.
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Author: Akashnath S
