Floki Inu (FLOKI), the popular memecoin, is showing strong signs of a potential breakout as it forms a bullish price pattern amid the market’s ongoing recovery. The cryptocurrency, which recently rebounded from a prolonged downtrend, could be gearing up for a substantial upside rally, according to technical indicators.
FLOKI’s Bullish Divergence Signals Uptrend
Recent analysis by AMBCrypto suggests that FLOKI is exhibiting bullish divergence on the daily charts. This technical pattern occurs when an asset’s price remains stable or makes a lower low while momentum indicators like the Relative Strength Index (RSI) show a higher low. Such a formation indicates a weakening bearish trend and a potential price reversal.
If FLOKI holds above the critical $0.0000056 level, analysts project a 20% surge toward the $0.00000723 mark. Moreover, should the memecoin breach and sustain a daily close above $0.0000073, it could trigger another 20% rally, potentially pushing the price to $0.00000885.
FLOKI Faces Resistance Below 200 EMA
Despite the bullish indicators, FLOKI remains below the 200 Exponential Moving Average (EMA) on the daily timeframe. This suggests that the asset is still navigating a bearish macro trend. However, increasing trader activity and rising momentum could shift the trajectory in favor of the bulls.
At press time, FLOKI was trading at approximately $0.000059, marking a 2.50% increase over the last 24 hours. Notably, trading volume surged by 10%, reflecting heightened investor participation.
Whale Accumulation and Market Sentiment
On-chain data from IntoTheBlock highlights a crucial accumulation zone between $0.000037 and $0.000047, where a whale has reportedly amassed 747.74 billion FLOKI tokens. This strong accumulation suggests significant confidence in the token’s future prospects.
Additionally, profitability among FLOKI holders has increased, with 55.27% of investors now in profit. However, 42% of addresses remain in loss, while 2.42% are at breakeven.
As traders continue to engage with FLOKI, key price levels at $0.0000547 and $0.0000628 indicate strong leverage positions. If bullish momentum sustains, FLOKI could be on the verge of a significant breakout, potentially delivering impressive gains to investors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Floki Inu’s Recent Surge: Whale Activity and Technical Indicators Signal Potential Bearish Trends
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