FlokiFi Locker has witnessed a remarkable surge in its Total Value Locked (TVL) to $165.6 million, surpassing well-known meme coins such as Dogecoin and Shiba Inu. Each lock on the Ethereum (ETH) and Binance Smart Chain (BSC) networks triggers a deflationary mechanism, leading to a reduction in Floki’s [FLOKI] circulating supply.
Following this significant achievement, FLOKI appears primed to capitalize on its current momentum for a potential price rally.
Are there bullish signals from technical indicators?
Presently, FLOKI’s price is in consolidation mode, hovering within a tight range around $0.000136. The Bollinger Bands indicate low volatility, a common precursor to an impending breakout.
The critical question revolves around the likely direction. The Relative Strength Index (RSI) stands at 51.45, positioned between neither overbought nor oversold territories.
Therefore, given the neutral momentum, traders are advised to diligently observe price movements for signs of a potential uptrend or downtrend. A breakout above the upper Bollinger Band range might signify a bullish surge, though caution is recommended.
Increasing holder base: A positive indicator?
By mid-September, the total count of FLOKI holders had surpassed 595, indicating a growing level of investor confidence and hinting at rising demand for the token.
Furthermore, the combination of heightened demand and diminished supply due to deflationary burns could propel the token’s price upwards in the approaching weeks. The expanding holder base stands as a critical bullish signal deserving attention from investors.
Insights from on-chain data: What do the indicators reveal?
The on-chain data paints a varied picture. While the “In the Money” metric displays a bullish 0.82%, other metrics present less optimistic readings. Net network growth has dipped by 0.33%, and significant transactions have decreased by 12.36%, suggesting a bearish influence.
Despite certain positive aspects, exercising caution is prudent as these bearish factors could impact short-term price movements.
Liquidation statistics: Can the bulls seize control?
Recent liquidation data suggests that long positions outweigh shorts, with long liquidations totaling $3.82K on September 22. This implies that bullish investors continue to dominate the market.
The relatively subdued level of liquidations signifies market stability, offering space for a possible upward trajectory in prices.
Is FLOKI on the brink of a breakout?
Backed by a historic TVL figure, a growing holder base, and positive on-chain indicators, FLOKI seems well-positioned for a breakout.
Nevertheless, the mixed on-chain data and low volatility could lead to market indecision. While FLOKI holds bullish promise, traders should remain vigilant for confirmation signals before engaging further.