Market Overview: FLOKI/Tether (FLOKIUSDT) on 2026-01-06

Summary
• Price action formed a bullish breakout from a descending triangle pattern on the 5-minute chart.
• RSI signaled a strong overbought condition at 78, with MACD showing positive divergence and bullish momentum.
• Volatility expanded as price traded above the upper Bollinger Band during the final 6 hours.
• Daily volume increased by ~45% compared to the prior 24 hours, with turnover confirming the price rise.
• A 61.8% Fibonacci retracement level at $0.0000585 appears to offer key support ahead of the next rally.

FLOKI/Tether (FLOKIUSDT) opened at $0.00006032 on 2026-01-05 12:00 ET and closed at $0.00005841 by 12:00 ET the following day, reaching a high of $0.00006189 and a low of $0.00005736. The pair saw a 24-hour volume of approximately $138.8 billion and a notional turnover of ~$6.35 billion.

Price Structure and Candlestick Patterns

On the 5-minute chart, price action traced a clear descending triangle pattern, breaking out above the upper boundary around 03:45 ET. A bullish engulfing pattern emerged following the 04:30 ET low, confirming renewed buying pressure. This breakout was supported by a strong volume spike and a sharp acceleration in price.

Moving Averages and Momentum

Short-term averages (20/50-period on the 5-minute chart) sloped upward during the final 8 hours of the session, confirming the breakout. RSI hit an overbought level of 78, while MACD showed a positive divergence, suggesting continued momentum into the next session is possible.

Volatility and Bollinger Bands

Bollinger Bands expanded in the final 6 hours, with price spending more than 4 hours above the upper band—a sign of increased volatility. This breakout coincided with rising volume and a breakout from the descending triangle, suggesting a strong move could be in play.

Volume and Turnover Analysis

Volume surged significantly in the 02:00–05:00 ET period, especially during the 03:45 ET candle, where volume reached ~$10.2 billion. Turnover spiked in line with price, with no notable divergence observed. This volume-to-price alignment strengthens the case for a continuation of the upward trend.

Fibonacci Retracements

A key Fibonacci retracement level at $0.0000585 (61.8% of the recent swing) acted as strong support. Price has bounced off this level twice in the last 24 hours, suggesting it remains a critical area to watch for short-term bounces or potential breakdowns.

The market appears to be building bullish momentum with a strong breakout confirmed by volume and momentum indicators. While the overbought RSI and tight Fibonacci levels suggest caution, a pullback to $0.0000585 could present a reentry opportunity. Traders should remain alert for a reversal or a continuation gap, but risk a short-term correction in the next 24 hours if volume subsides.