FLOKI Cryptocurrency: New Signs of Accumulation Point to Potential Uptrend
Following the recent surge post-Monday, there has been a noticeable uptick in accumulation activity for Floki [FLOKI], hinting at a possible upcoming rally.
On October 14th, FLOKI experienced a significant 12% increase before encountering resistance and experiencing a sharp pullback.
Given the prevailing dominance of memecoins and the evident interest from investors in FLOKI, the question arises – should you consider riding this wave?
Position on FLOKI’s Chart
Examining the higher timeframe chart, the market structure for FLOKI appeared bullish following the recent high. However, the upward movement was halted at the mid-level of an ascending channel (highlighted in yellow).
Since August, the lower boundary of this channel has served as a critical support level and an entry point for bullish market participants. This support level coincides with a bullish order block (OB) around $0.000014, establishing it as a key demand area.
Therefore, the retracement might present a buying opportunity, with potential bullish targets at the mid-level, the 200-day Moving Average (MA), or the upper boundary of the range. The stochastic RSI indicated a reversal, lending support to the positive outlook.
However, a breach below the lower boundary of the channel could impact the aforementioned bullish scenario.
Surge in FLOKI Accumulation
One of the most encouraging indicators is the increasing accumulation trend, as evidenced by a surge in holdings being moved off exchanges.
This shift implies that more users are opting for self-custody of their meme coins, signaling a strong belief in a potential price upsurge down the line.
Furthermore, exchange reserves have decreased at present, indicating a reduction in selling pressure on centralized exchanges and setting up favorable conditions for a FLOKI rally.
Nevertheless, the overall Weighted Sentiment index remains close to a neutral zone, suggesting that market participants are currently indecisive about their sentiment towards FLOKI.
Overall, the direction of FLOKI’s price remains uncertain, with investors maintaining a cautious stance following the recent surge.
Having said that, a retreat to key support levels could offer fresh entry opportunities for FLOKI enthusiasts, especially if the upward momentum regains strength.
Disclaimer: The views presented are personal opinions and should not be perceived as financial, investment, or trading advice.