- After a month-long rally, FLOKI’s daily chart turned red.
- A few metrics indicated that the bull rally would resume, while the rest suggested otherwise.
FLOKI broke above a bullish pattern a few days ago, and since then, its value has surged significantly. But these recent gains might just be the beginning of a major bull rally. Let’s have a closer look at what’s going on with the memecoin.
FLOKI’s bullish breakout is paying off
World Of Charts, a popular crypto analyst, posted a tweet highlighting that FLOKI broke out of a bullish pattern a few weeks ago.
To be precise, the memecoin’s price entered the pattern during the beginning of March and had consolidated inside it only to break out on the 13th of May.
The good news was that since the breakout, FLOKI’s price has risen by more than 30%. If the memecoin continues to follow this path, then investors might as well witness an overall 150% price rise in the coming weeks or months.
Though this looked pretty optimistic, things on the ground were a bit different. After a comfortable monthly rally, FLOKI met with a roadblock as its daily chart turned red.
According to CoinMarketCap, the memecoin’s price dropped by more than 2% in the last 24 hours. At the time of writing, the meme coin was trading at $0.000228 with a market capitalization of over $2.18 billion, making it the 54th largest crypto.
Will FLOKI resume its bull rally?
To determine whether this was the end of the meme coin’s bull rally, AMBCrypto analyzed Santiment’s data. We found that the memecoin’s weighted sentiment remained low, meaning that bearish sentiment around it was dominant.
Its network growth also dropped last week, which meant that fewer new addresses were created to transfer the token. Another bearish metric was the funding rate, which increased. Generally, prices tend to move the other way around than the funding rate.
Source: Santiment
Nonetheless, a few of the metrics did hint that FLOKI might resume its bull rally again. For instance, its MVRV ratio had a value of 28.4%, which can be inferred as a bullish signal.
On top of that, AMBCrypto’s look at Coinglass’ data revealed that FLOKI’s long/short ratio increased in the last 24 hours.
The rise in the metric may signal a growing preference for buying and holding FLOKI, indicating that the chances of a bullish price movement were high.
Source: Coinglass
As per the Bollinger Bands, FLOKI’s price was above its 20-day Simple Moving Average (SMA). The MACD also displayed a clear bullish advantage in the market.
Nonetheless, the Chaikin Money Flow (CMF) looked bearish as it registered a downtick.
Source: TradingView
Is your portfolio green? Check out the FLOKI Profit Calculator
If FLOKI manages to resume its bull rally, the memecoin might reach $0.00025 before closing this week. This seemed to be the case, as liquidation would rise at that level, which can result in a short-term price correction.
On the other hand, if the memecoin remains bearish, then its price might drop to the $0.00018 to $0.00017 range by the end of this week.
Source: Hyblock Capital