FLOKI Rally Soars on $121M Derivatives Inflows Amid Bull Trap Warning
FLOKI rallied 25% after $121 million flooded its derivatives market, pushing open interest up 162% to $37.5 million. The surge led FLOKI to top the wider memecoin rally as overall crypto market cap recovered to $3.75 trillion. Long positions dominated, triggering $275,000 in short liquidations. Technical indicators signal strong momentum: the ADX at 38 confirms the trend, while the RSI above 70 flags overbought conditions and a potential bull trap, as past rallies saw 10–15% corrections. Liquidity clusters above and below current levels suggest volatile reversals. Traders should monitor FLOKI open interest, RSI, and key support and resistance zones to manage risk amid possible pullbacks or renewed rallies.
Bullish
The FLOKI rally reflects robust bullish momentum fueled by $121M in derivatives inflows and a 162% spike in open interest. Short liquidations and a leading position in the memecoin rally underscore strong trader conviction. Although RSI overbought levels warn of a possible short-term pullback, the ADX confirms trend strength. Liquidity clusters indicate potential volatility but also highlight clear support and resistance zones. In the short term, traders may see corrective dips; over the medium to long term, sustained inflows and momentum suggest continued upside potential if key levels hold.