The recent cryptocurrency market crash has left many investors anxious, especially those holding memecoins. Floki Inu (FLOKI), a well-known memecoin, has experienced a notable decline, falling 13% in the last week and 42% over the past month. Despite this, Floki has shown signs of recovery in the last 24 hours, gaining 4.52% and trading at $0.0001526.
ZAYK Charts analyzed Floki’s price movement against Tether (USDT) within a 4-hour timeframe. He noted a descending channel formation, characterized by an upper resistance line and a lower support line. From early June to mid-July 2024, its price oscillated between these lines, forming lower highs and lower lows, which indicates a bearish market.
Despite the prevailing downtrend, the analyst identified a potential bullish scenario. An upward breakout from the descending channel could signify a reversal, potentially initiating a bullish trend phase. The chart projects a target area marked in green, suggesting an upward potential of approximately 64.93%. Recent price action bolsters the anticipation of this breakout.
FLOKI Eyes Resistance Breakout
FLOKI’s price is consolidating near the channel’s upper boundary, suggesting an imminent breach of the resistance line. If a breakout occurs, it could trigger a substantial rally, as the bearish sentiment may be invalidated, drawing in new buyers.
Currently, FLOKI is positioned below both the 50-day Exponential Moving Average (EMA) at $0.00018304 and the 100-day EMA at $0.00018506, indicating a bearish trend. Interestingly, the 50 EMA remains above the 100 EMA, but starts to decline towards the 100-day EMA, indicating a potential trend reversal.
The market’s Relative Strength Index (RSI) at 42.43 suggests weak momentum below 50 but trending upward, hinting at possible recovery. The Moving Average Convergence Divergence (MACD) shows a bullish crossover, as its line exceeds the signal line, indicating potential upward momentum. Meanwhile, the Chaikin Money Flow (CMF) at 0.05 indicates slight buying pressure.
Market analysts express optimism, with crypto analyst Dona suggesting that Floki’s price could reach $0.003. In other words, analysts predict a potential surge to $ 0.000199 for Floki by Q3 2024. This forecast is due to some recent technical signs and a gradual price recovery, despite ongoing challenges in the broader market.
Related Readings | Cardano 9.0 Unleashes On-Chain Governance