FLOKI Erases October Gains; How Low Will Prices Drop?

• FLOKI experienced a 20% drop, erasing all October gains amid U.S. election volatility.
• Key support levels at $0.00012 and $0.00069 may determine future price movements.
• On-chain metrics show steady accumulation, suggesting potential for a price rebound soon.

FLOKI’s price action in October was a rollercoaster ride. After a period of impressive performance, the coin faced a sharp decline as November began. Volatility surrounding the U.S. election created uncertainty. As a result, FLOKI dropped by 20%, wiping out all gains from October. Traders now ask how much further this pullback will go before a recovery begins.

FLOKI erases all October gains – How far can the price pullback go?

Explore more key information on #SoSoValue: https://t.co/mjvYOgmJld #FLOKI #BTC

— Cryptodan △™ (@Cryptodanphuket) November 4, 2024

Analyzing FLOKI’s Pullback

In October, FLOKI hovered around the critical 78.6% Fibonacci level at $0.00012. This level acted as important short-term support. Below this lies April’s low, another key support zone that halted a severe sell-off in August.

These levels could prevent further losses. A rebound may occur if Bitcoin (BTC) recovers after the elections. However, a broader market downturn could push FLOKI down to test deeper lows. If the current support breaks, traders should keep an eye on August’s low and $0.00069 as significant targets.

On-Chain metrics reveal market tension. The average Relative Strength Index shows bears hold the advantage. Additionally, the sluggish On-Balance Volume (OBV) indicates weak demand for FLOKI. Traders must remain cautious, as these indicators suggest a tough battle ahead.

Accumulation Metrics Signal Potential Rebound

Despite the recent struggles, on-chain metrics indicate steady accumulation. This trend suggests a rebound might be possible. Currently, market sentiment remains neutral, leaving prices open to both declines and increases.

However, a rise in daily active addresses points to renewed interest. This uptick follows a pre-election dip and hints at growing demand. If this momentum continues above established support levels, a potential reversal could follow.

Moreover, the gradual rise in FLOKI tokens held outside exchanges contributes to this optimistic outlook. Despite the 20% drop, selling pressure on exchanges has eased. FLOKI’s availability on centralized platforms has decreased since late September.

This drop in supply may provide the room needed for recovery. Ultimately, the results of the U.S. elections will significantly influence short-term market sentiment and investors’ reactions to FLOKI. All eyes are on the election results as traders prepare for potential market shifts.

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