Floki (FLOKI), the meme coin with growing DeFi and metaverse ambitions, may be on the cusp of a major rebound following a prolonged correction that began in June 2024. After peaking at $0.00035, the token entered a WXY correction pattern, finally bottoming out on April 7 near the key 1.0 Fibonacci extension level of $0.0000443—mirroring the length of its earlier corrective wave W.
Technical analysis on FLOKI’s daily chart reveals a compelling setup. The Relative Strength Index (RSI) has consistently printed higher lows while price action created lower lows—forming a bullish divergence. This pattern, often indicative of selling exhaustion, hints at a growing accumulation phase just beneath the surface.
Zooming into the 1-hour chart, FLOKI’s structure becomes even more compelling. From the April 7 bottom, the token surged in a five-wave impulsive move to $0.000060 on April 13, followed by a textbook ABC correction. Notably, wave (c) of this correction has formed a falling wedge—a structure typically associated with bullish reversals.
This corrective dip brought FLOKI into a major demand zone between $0.0000512 and $0.000053, overlapping key Fibonacci retracement levels at 0.5 and 0.618. Momentum indicators, particularly the RSI, are now hovering near oversold territory, suggesting a weakening of bearish pressure.
For bulls to reclaim control, FLOKI must decisively break above the $0.00005851 level, with a confirmed move past $0.00006018 acting as a stronger bullish signal. If successful, Fibonacci projections point to potential targets of $0.00006575, $0.00006968, and $0.00007469 in the next impulsive wave.
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However, the bullish setup could unravel if FLOKI falls below $0.00005126, exposing the token to downside risk near $0.00004884 or even a full retest of the April lows at $0.00004435.
With price action consolidating at a critical inflection point, traders are closely watching for a breakout that could set the tone for FLOKI’s next major move.
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.
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