Following the post-Monday surge, there has been a fresh wave of accumulation in Floki [FLOKI], hinting at a possible upcoming rally.
On October 14th, FLOKI experienced a 12% increase, only to face a rapid pullback after encountering a significant obstacle.
Given the prevailing dominance of memecoins and the evident investor interest in FLOKI, are you considering joining this movement?
Position on FLOKI’s chart
On a higher timeframe chart, FLOKI’s market structure exhibited a bullish trend following Monday’s higher high. However, the upward momentum encountered resistance at the midpoint of the ascending channel (highlighted in yellow).
Since August, the lower boundary of the channel has served as a critical support level and a point of entry for bullish market participants. This support level coincided with a bullish order block (OB) around $0.000014, establishing it as a significant demand area.
As a result, the retracement could be viewed as an opportunity for accumulation, with bullish price targets at the mid-range, 200-MA (Moving Average), or the upper boundary of the range. The stochastic RSI indicated a reversal, providing further support for the bullish outlook.
Nevertheless, a breach below the lower range of the channel would challenge the aforementioned bullish scenario.
Surge in FLOKI accumulation
One of the most positive indicators was the increasing accumulation trend, evidenced by a surge in coins moving off exchanges.
This shift indicated that more users were transferring their meme coins from centralized exchanges (CEXes) to self-custody, signaling a strong belief in a potential price upswing.
Simultaneously, exchange supplies were dwindling, suggesting a decrease in selling pressure on CEXes, creating favorable conditions for a FLOKI price rally.
However, the overall Weighted Sentiment remained relatively neutral, indicating that speculators were indecisive in their bullish or bearish sentiments at the time of publication.
In conclusion, the FLOKI price direction appeared uncertain as investors exercised caution following the Monday surge.
With that said, a retreat to crucial support levels could present fresh entry opportunities for FLOKI investors, particularly if the uptrend gains momentum once again.
Disclaimer: The content provided is not intended as financial, investment, trading, or any form of advice and represents the author’s personal perspective.