Following a period of consolidation lasting nearly a month, the well-known meme coin Floki [FLOKI] appears primed for a notable upward surge amidst the current challenges facing the cryptocurrency market.
From the end of August 2024 onwards, FLOKI has been consolidating within a narrow range spanning from $0.000115 to $0.000132.
However, the main drivers behind the potential 50% rally are its bullish on-chain metrics, an upcoming breakthrough at the $0.000136 level, and an impending marketing announcement scheduled for the 24th of September, as communicated by the FLOKI community.
Reasons behind FLOKI’s Potential 50% Growth
Notwithstanding the breakout of the descending trendline according to CryptoCrypto’s technical analysis, FLOKI struggled to gather momentum, encountering strong resistance near the $0.000136 level at the time of writing.
It was seen trading below the 200 Exponential Moving Average (EMA) on a daily timeframe, signaling a downward trend.
The 200 EMA serves as a key technical tool that traders and investors frequently utilize to assess whether an asset is trending upwards or downwards.
Referencing historical price movements, if FLOKI manages to close its daily candle above the $0.000139 mark, there exists a significant chance of a potential 50% surge towards $0.00021 in the near future.
Bullish On-chain Metrics
This optimistic forecast is further reinforced by on-chain metrics. Coinglass, an on-chain analytics firm, reported that FLOKI’s Long/Short Ratio stood at 1.34, indicating a bullish sentiment prevailing among traders.
Moreover, there was a 7.3% uptick in Futures Open Interest over the past day, along with a 3.2% rise in the last four hours.
This escalating Open Interest signifies a potential increase in long positions among traders in anticipation of the impending breakout.
Market participants often combine rising Open Interest with a Long/Short Ratio above 1 to establish long positions.
As of the latest data, 57.52% of top traders held long positions, while 42.48% maintained short positions, pointing towards a bullish dominance in the market.
Current Price Trends
Currently, FLOKI is hovering around $0.000133 after witnessing a modest price uptick of more than 0.90% in the past 24 hours.
During the same timeframe, its trading volume surged by 38%, indicating heightened trader participation.
Meanwhile, a majority of cryptocurrencies, including Bitcoin [BTC], Solana [SOL], and XRP, struggled to gain momentum over the previous 24 hours until the latest data.