FLOKI Surges 40% to Six-Month High on Bullish Breakout

FLOKI, a popular memecoin, has recently demonstrated significant bullish momentum, breaking out of a key trendline resistance and flipping it into support. This technical development has laid the groundwork for a potential upside rally in the coming weeks. On July 17, FLOKI surged by 40% to reach a six-month high of $0.000138. As of the latest update, it was trading at $0.000129, marking a 175% increase from its year-to-date low recorded in April.

The rally gained traction after FLOKI's price broke out of a long-term descending trendline and completed a clean retest on the daily chart. This move is typically seen as a classic bullish breakout, shifting market sentiment in favor of the bulls. The chart indicates that FLOKI has been in a downtrend since late 2023, consistently printing lower highs and lower lows. However, this trend began to reverse in mid-May when FLOKI started forming higher lows, suggesting that buyers were stepping back in.

The breakout in early July marked a major change in structure, and the successful retest confirmed that the former resistance had now flipped into support. Currently, FLOKI is holding firm above the $0.00012 level, comfortably above the trendline it broke out from. This line had previously capped price action for months but now appears to be acting as solid support.

FLOKI also broke out of a descending parallel channel that had been in play since May, adding more weight to the bullish setup and suggesting further upside potential. However, the memecoin is now facing resistance around the 61.8% Fibonacci retracement level at $0.000167. A daily close above this level could open the door to the 78.6% Fib level at $0.000196, which would be roughly 52% higher than the current price level.

From a technical standpoint, things are lining up in favor of the bulls. FLOKI recently flashed a golden cross on the daily chart, where the 20-day simple moving average crossed above the 50-day, often seen as a strong bullish signal. FLOKI’s 20-day SMA has crossed above the 50-day SMA, a short-term bullish momentum signal often seen as a precursor to extended rallies. Momentum indicators are also showing strength. The MACD line remains above the signal line and is trending upward, indicating growing momentum. The RSI is currently at 74, placing FLOKI in overbought territory. However, in meme rallies, such levels often reflect strong buying pressure rather than an immediate reversal.

On the downside, if a pullback occurs, the $0.000102 level, marking the 50% Fibonacci retracement, could act as the next support. Beyond the charts, several factors are fueling FLOKI’s rally. On-chain activity is on the rise, with daily active addresses more than doubling, indicating growing user engagement and network activity. Additionally, speculation about a potential listing on a major exchange has started to circulate, stirring up investor excitement and driving further demand for the token.