FLOKI’s Momentum Party May Be Pausing

Floki (FLOKI) is showing early signs of exhaustion after a sharp upside move, with a widely followed momentum indicator now warning that a short-term pullback may be approaching.

As it happens, renowned cryptocurrency analyst Ali Martinez pointed out on January 5 at the TD Sequential indicator that has printed a sell signal on FLOKI’s 12-hour chart, a setup that often appears near local tops during momentum-driven rallies.

This doesn’t confirm a trend reversal, but it does suggest that upside momentum is cooling, at least temporarily.

Why The TD Sequential Signal Matters

The TD Sequential helps identify trend exhaustion, not long-term direction. It tracks a series of candles to highlight moments when buying or selling pressure may be overstretched.

On FLOKI’s 12-hour timeframe, the indicator completed a full bullish count and printed a sell signal, historically associated with short-term corrections, sideways consolidation, and failed continuation attempts. 

In fast-moving meme coin markets, these pauses can arrive quickly and catch late buyers off guard.

FLOKI’s Recent Tally Set Up The Risk

FLOKI’s latest move higher was driven by strong speculative momentum rather than a structural shift in market conditions. As price pushed into higher levels, upside follow-through began to weaken, increasing the likelihood of profit-taking.

The sell signal doesn’t imply FLOKI’s broader trend is broken, but it does suggest risk-reward is no longer skewed to the upside in the immediate term.

Correction Or Consolidation?

Historically, TD Sequential sell signals on lower timeframes tend to resolve in one of three ways. The first is a shallow pullback that resets momentum. The second is a sideways consolidation that cools sentiment. The last is a deeper retracement if broader market conditions weaken.

Which outcome plays out will depend heavily on overall meme coin sentiment and the short-term direction of the market’s leader – Bitcoin (BTC).

What Traders Watching Next

At the moment, the price of FLOKI stands at $0.00005579, indicating a 1.63% drop on the day, but also a whopping 37.24% gain across the past week, and a 24.25% increase on its monthly chart, according to the most recent information.

Key areas of focus going forward include whether FLOKI holds above recent support zones, if volume fades during pullbacks (which is a healthy sign), and whether buyers step back in after momentum resets. For now, the signal serves as a caution flag, not a panic alarm.

FLOKI price today

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