Following a month-long consolidation phase, the popular meme coin Floki [FLOKI] is now positioned for a substantial upward rally amidst the current challenging cryptocurrency market conditions.
Since the end of August 2024, FLOKI has been consolidating within a narrow range bordered by the $0.000115 and $0.000132 levels.
However, the potential catalysts for this significant surge of more than 50% include bullish on-chain metrics, an anticipated breakout beyond the $0.000136 level, and an upcoming marketing revelation scheduled for September 24th, as shared by the FLOKI community.
Reasons behind the Projected 50% Surge for FLOKI
As per the technical analysis by CryptoCrypto, despite breaking the descending trendline, FLOKI struggled to gain momentum and faced strong resistance around the $0.000136 mark at the time of reporting.
The asset was trading below the 200 Exponential Moving Average (EMA) on the daily timeframe, hinting at a downward trajectory.
The 200 EMA is a widely used technical tool by traders and investors to ascertain the prevailing trend of an asset.
Building on historical price actions, surpassing the $0.000139 level in the daily candle closing could pave the way for a potential 50% surge, targeting $0.00021 in the near term.
Encouraging On-Chain Metrics
Fueling this optimistic projection are on-chain metrics. Coinglass, an on-chain analytics company, reported FLOKI’s Long/Short Ratio at 1.34, signaling a bullish sentiment among traders.
Furthermore, the Futures Open Interest soared by 7.3% in the last 24 hours and by 3.2% within four hours, indicating a growing interest from traders with the impending breakout on the horizon.
Typically, traders and investors leverage a rising Open Interest alongside a Long/Short Ratio above 1 to initiate long positions.
At present, 57.52% of leading traders held long positions, while 42.48% maintained short positions, portraying a bullish dominance over the asset.
Current Price Momentum
Currently, FLOKI is exchanging hands near $0.000133, registering a minor uptick of over 0.90% in the last 24 hours.
During this period, the trading volume surged by 38%, indicating heightened engagement from traders.
Meanwhile, several cryptocurrencies like Bitcoin [BTC], Solana [SOL], and XRP struggled to gather momentum in the past 24 hours until the time of reporting.