FLOKI Plummets 32% in June: 3 Red Flags Every Crypto Investor Should Watch

Memecoin mania takes a hit as FLOKI bleeds out—three ominous signals suggest this isn''t just a dip.

1. Liquidity crunch: The 32% nosedive mirrors exchange outflows that''d make a bank run blush.

2. Social volume collapse: Telegram hype trains derailing faster than a shitcoin rug pull.

3. Whale watch: Big wallets dumping like they just got an SEC subpoena.

Pro tip: When a dog-themed token tanks harder than your average ICO, maybe—just maybe—it''s time to check those ''fundamentals'' (lol).

FLOKI nears critical support: What’s next?

At present, FLOKI has traded into a key support zone, ranging between 0.00007602 and 0.00007453.

Market analysis revealed that this support level has played a crucial role in FLOKI’s price rallies on three different occasions, each time resulting in significant gains.

Source: TradingView

However, the structure this time is less encouraging. The broader trend remains bearish, and conviction has eroded across spot and derivatives markets.

History rhymes, but it doesn’t always repeat

Open Interest, which measures the number of unsettled derivative FLOKI contracts, continued to decline.

It dropped by 17% in the last 24 hours, suggesting a significant decrease in overall liquidity in the derivatives market.

Source: CoinGlass

AMBCrypto found that FLOKI’s bearish sentiment continues to grow, hinting at a further price decline.

Derivatives data points to weak market conviction

The selling pressure appears broad-based. Accumulation/Distribution (A/D) printed a reading of -6.3 trillion, confirming a dominant exit phase.

Source: TradingView

Additionally, the Parabolic Stop and Reverse (SAR) aligns with this sentiment, as dots have formed above the current price. If more dots form, it WOULD imply increased selling volume in the market.

Finally, the Moving Average Convergence Divergence (MACD) has confirmed a death cross pattern.

This pattern forms when the MACD blue line crosses below the signal orange line, indicating a likely significant price drop.

Source: TradingView

Will development activity support the price?

To counter the weakening trend, FLOKI’s team announced a five-week ad campaign aimed at promoting its play-to-earn metaverse game.

If successful, the effort could revive user interest and provide support.

However, without a tangible uptick in adoption, the current downtrend may persist—leaving support vulnerable.