FLOKI's Bullish Pattern Suggests 20% Upside Potential

FLOKI, a cryptocurrency inspired by Viking culture and meme coin hype, is currently garnering significant attention. The memecoin has formed a bullish price action pattern on the charts, suggesting a potential for a massive upside rally. This upside might follow the memecoin’s recent price recovery from its prolonged downtrend.

According to the analysis, FLOKI appeared bullish as it formed a bullish divergence on the daily charts and begun moving in an upward direction. A bullish divergence occurs when the asset’s price either makes a lower low or remains stable while momentum indicators, such as the Relative Strength Index (RSI), make a higher low. This seemed to suggest that the asset has been losing bearish momentum and may witness a price reversal.

Based on its recent price action, if the memecoin holds above the $0.0000056-level, there is a strong possibility that FLOKI could soar by 20% to hit the $0.00000723-level in the future. Meanwhile, if this momentum continues and the memecoin breaches and closes a daily candle above the $0.0000073-level, it could soar by another 20% to touch the $0.00000885-level in the future.

However, FLOKI’s price remains below the 200 Exponential Moving Average (EMA) on the daily timeframe. This indicated that the asset may be in a strong bearish trend, especially on the back of its weak price action. At press time, FLOKI was trading near $0.000059, after climbing by just 2.50% in the last 24 hours. Additionally, trader and investor participation seemed to have skyrocketed, resulting in a 10% jump in trading volume.

The area between $0.000037 and $0.000047 is crucial. Especially since it’s a level where a crypto whale has accumulated 747.74 billion FLOKI tokens. Additionally, on the back of the latest price surge, 55.27% of FLOKI holders turned profitable. 42% of addresses were still facing losses though due to a high purchase rate. On the contrary, only 2.42% of FLOKI holders were at the breakeven level at press time.

Finally, in addition to FLOKI holders’ profitability, traders seemed to be over-leveraged at $0.0000547 on the lower side and $0.0000628 on the upper side. This suggests that traders are currently over-leveraged at these levels, which could impact the price movement of FLOKI in the near future.