There is growing interest in Floki [FLOKI] as it approaches a potential breakout from its extended downward trend. Currently, Floki is priced at $0.0002417, showing a 0.09% decrease in the last 24 hours.
The current price is consolidating above the $0.00021129 support level, with a significant resistance level at $0.00024862, based on the 0.786 Fibonacci retracement level.
If Floki manages to surpass this resistance, it may target $0.00028980 initially, followed by a potential rally towards $0.00034883. Traders are eagerly awaiting a decisive move that could confirm a bullish trend.
Technical Analysis Points Towards a Potential Market Rally
According to Fibonacci retracement levels, breaking through the $0.00024862 barrier is crucial for Floki. A successful breakout could lead to testing the $0.00028980 resistance level. The Relative Strength Index (RSI) currently stands at 56.21, signaling a neutral market sentiment.
This indicates that there is room for upward movement if buying pressure increases. The consolidation near the resistance level suggests traders are gearing up for a breakout, heightening the anticipation.
Decline in Daily Active Addresses Raises Concerns
The daily active addresses for Floki have dropped significantly to 2,096 from 4,085 in the previous session. This sharp decline indicates reduced short-term network activity, possibly attributed to traders awaiting a clear breakout signal.
However, this decline may not necessarily imply a lack of interest but rather a sense of caution among market participants as Floki approaches a critical juncture in its price action.
Low Levels of FLOKI Liquidations Reflect Cautious Market
Interestingly, liquidation data reveals $231.96 in liquidated long positions, with no short positions liquidated. This suggests that despite the risks taken by bulls ahead of a potential breakout, bears remain inactive.
The limited liquidation activity indicates a cautious approach from traders as they anticipate a definitive move. A successful break above the resistance levels could lead to a substantial increase in liquidation volumes, potentially amplifying volatility.
Optimistic Signs Emerge from Price-DAA Divergence
The price-DAA divergence for Floki has surged to a remarkable 112.57%. This significant rise reflects strong confidence among long-term holders, even amidst a decline in daily active addresses.
Therefore, this divergence indicates optimism for a sustained upward momentum, particularly if key resistance levels are breached.
Will FLOKI Confirm the Anticipated Breakout?
FLOKI stands at a critical point in its price trajectory. With a robust price-DAA divergence and a stable RSI, the token seems well-positioned to challenge its current resistance levels.
A confirmed breakout above $0.00028980 could trigger a surge towards $0.00034883. However, given the reduced on-chain activity, caution is advised. The forthcoming move will determine whether FLOKI can capitalize on the momentum and establish a sustained uptrend.