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.

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.