FLOKI, a famous memecoin, recently experienced a notable breakout from a bullish pattern, leading to a significant surge in its value. This upward movement has sparked discussions about the potential onset of a major bull rally for FLOKI.
Renowned crypto analyst World Of Charts recently highlighted in a recent X post that FLOKI broke out of a bullish pattern. The meme coin’s price had been consolidating within this pattern since early March before breaking out on May 13. Following this breakout, FLOKI’s price surged by over 30%.
FLOKI’s initial strong monthly rally hit a roadblock, as its daily chart turned red. According to CoinMarketCap, FLOKI’s price dropped by 5.39% in the last 24 hours. As of now, FLOKI is trading at $0.0002208, with a market capitalization exceeding $2.07 billion.
Data from Santiment, a well-regarded analytical platform, revealed that bearish sentiment around FLOKI remains dominant. The meme coin’s network growth declined last week, indicating fewer new addresses were created to transfer the token. Additionally, an increased funding rate suggests prices may move inversely, potentially leading to a downward trend.
Despite these bearish indicators, some metrics suggest that FLOKI might resume its bullish trajectory. For instance, the MVRV ratio stands at 28.4%, which is considered a bullish signal. Renowned analytical platform, Coinglass data also showed an increase in FLOKI’s long/short ratio over the past 24 hours, indicating a growing preference for buying and holding the memecoin.
From a technical standpoint, FLOKI’s price remains above its 20-day Simple Moving Average (SMA), and the MACD (Moving Average Convergence Divergence) indicates a bullish market advantage. However, the Chaikin Money Flow (CMF) showed a bearish downtick, suggesting some caution.
If FLOKI manages to regain its bullish momentum, it could reach $0.00025 before the end of the week. However, increased liquidation at that level could also lead to short-term price corrections. On the other hand, if bearish trends continue, FLOKI’s price might drop to the $0.00018 to $0.00017 range by the week’s close.
The next few days will determine whether FLOKI can sustain its recent gains or face further declines. Investors and analysts will closely monitor the meme coin’s performance to gauge its future trajectory.
