Bitcoin News Today: FLOKI Memecoin Surges 82% in a Month, Breaks Key Support Levels

FLOKI, a memecoin, has experienced a significant rally, increasing by 82% over the past month. This surge has positioned the memecoin for potential further gains, with analysts suggesting that it could surpass the $0.00015 mark. However, this upward trajectory is not without its challenges, as the memecoin market has shown signs of volatility in recent days.

Over the past five days, FLOKI has rallied by 41%, breaking through two critical support levels. The first level, $0.000096, was flipped to support on July 16th, while the second level, $0.000123, was flipped to support the following day. These breakthroughs have bolstered the bullish momentum of FLOKI, contributing to its overall performance.

The memecoin market has seen a substantial increase in its total market cap, adding almost $21 billion over the past month. This 46% increase in the sector's total market cap has been driven by the bullish momentum of major cryptocurrencies such as Bitcoin and Ethereum. The runaway bullish momentum of these two cryptocurrencies has contributed to FLOKI’s performance, as investors have sought to capitalize on the memecoin's potential for further gains.

However, the bullish momentum of FLOKI could be interrupted by a minor price dip in Bitcoin over the weekend. If Bitcoin drops to the $117k mark, it could potentially interrupt FLOKI’s march higher. Traders should be prepared for these two scenarios, as the memecoin market has shown signs of volatility in recent days.

Using the move down from $0.000123 to $0.000059 that occurred in May and June, a set of Fibonacci levels was plotted. It showed that FLOKI has reached the initial target of $0.000139, the 23.6% northward extension level. The next target was at $0.000163. The CMF had been above +0.05 in recent days to signal strong capital flow into the market, but it dropped to +0.02 at the time of writing. The A/D indicator, on the other hand, has maintained its steady uptrend over the past month. Together, the volume indicators outlined strong demand for FLOKI, which has slowed down over the past three days. The MACD, like the price action, signaled strong bullish momentum. There weren’t any clues of a sizeable retracement ahead for FLOKI.

A possible downward move to collect the liquidity at $0.00012 could come, especially if Bitcoin witnesses a price dip. The 1-week liquidation heatmap showcased the $0.000122 and $0.000116 levels as key magnetic zones to the south. The $0.00015 zone was also a target for the price. Traders should be prepared for a dip toward $0.00012, but also for the possibility of a bearish reversal at the $0.00015 zone. FLOKI has made strong gains over the past week and might need some time to cool down and consolidate. This period could see the price chop toward nearby liquidity pockets, increasing price volatility.