Trader Issues Warning on Shiba Inu Competitor FLOKI, Says Memecoin Is Primed To Crash – Here Is His Target

Cryptocurrency trader and analyst Ali Martinez is leaning bearish on the memecoin FLOKI (FLOKI).

Martinez tells his 133,600 followers on the social media platform X that FLOKI has formed a flag pattern on the three-hour time frame.

According to the crypto analyst, FLOKI could fall by around 37% from the current level once it breaks down. In technical analysis, a flag pattern is either bullish or bearish depending on whether the flag part of the pattern forms after an uptrend or a downtrend.

If it forms after an uptrend, the flag pattern is bullish while if it forms after a downtrend then the flag pattern is bearish.

FLOKI is trading at $0.0000633 at time of writing.

Next up is Dogecoin (DOGE). Martinez says that the largest meme coin by market cap is forming an ascending triangle pattern on the one-hour chart. An ascending triangle pattern is a bullish signal, especially if the price breaks above the upper boundary or the diagonal resistance level of the triangle.

“Dogecoin will break out! A close outside $0.16 – $0.18 could trigger a 16% price move.”

Turning to Ethereum (ETH), Martinez says that the second-largest crypto asset by market cap needs to rise by around 22% from the current level and close above that threshold to turn bullish. Based on a graphic illustrating data from the crypto analytics platform IntoTheBlock, it appears that the level around $2,400 has 12.39 million addresses that are currently underwater.

That level could present strong resistance, as there would potentially be many sellers looking to exit their positions at the first opportunity of breaking even.

Ethereum is trading at $1,968 at time of writing.

Generated Image: Midjourney