There has been a growing interest in Floki [FLOKI] lately as it approaches a potential breakout from its long-established descending trading channel. Currently, Floki is being traded at $0.0002417, experiencing a slight decrease of 0.09% over the past 24 hours.
The price of Floki is currently consolidating above the support level of $0.00021129, with a significant resistance level at $0.00024862, indicated by the 0.786 Fibonacci retracement level.
If Floki manages to surpass this resistance, it might target $0.00028980 as its next challenge, followed by a potential rally towards $0.00034883. Traders are paying close attention for a definitive move that could confirm a bullish trend.
Technical Analysis Points Towards a Possible Rally
According to Fibonacci retracement levels, the immediate obstacle for Floki is at $0.00024862 that needs to be breached. A successful breakout here could lead to testing the critical resistance level at $0.00028980. Moreover, with the Relative Strength Index (RSI) at 56.21, the market sentiment remains in a neutral state.
This suggests that there is room for an upward movement in the price if buying pressure increases. Additionally, the consolidation near the resistance zone indicates traders are preparing for a potential breakout, adding to the overall anticipation.
Decrease in Daily Active Addresses
The daily active addresses for Floki have significantly dropped to 2,096 from 4,085 in the previous day. This sharp decline reflects a decrease in short-term network activity, likely as traders await a clear signal for a breakout.
However, this decline doesn’t necessarily imply a lack of interest but rather indicates caution among market participants as Floki approaches a crucial price point.
Low Liquidation Activity for FLOKI
Interestingly, the liquidation data illustrates $231.96 in liquidated long positions with no liquidated shorts. This signifies that bulls are taking higher risks in anticipation of the potential breakout, while bears are remaining cautious.
Therefore, the subdued liquidation activity reflects a sense of market caution as traders anticipate a decisive move. Once Floki overcomes the resistance levels, liquidation volumes are likely to increase significantly, potentially increasing market volatility.
Optimistic Signals from Price-DAA Divergence
The price-DAA divergence for Floki has surged to an impressive 112.57%. This notable increase suggests a strong underlying confidence from long-term holders, even amidst the decrease in daily active addresses.
Thus, this divergence indicates optimism for a sustained upward momentum, especially if crucial resistance levels are breached successfully.
Is a Breakout Likely for FLOKI?
FLOKI is currently at a crucial stage in its price action. With a robust price-DAA divergence and a stable RSI, the coin is technically well-positioned to challenge its existing resistance levels.
A confirmed breakout above $0.00028980 could potentially trigger a rally towards $0.00034883. However, caution is advised as on-chain activity suggests a reduction in engagement. The forthcoming move will determine whether FLOKI can capture the momentum and reinforce its upward trajectory.