Over the recent weekend, a surge in interest was witnessed in memecoins, with PEPE leading the charge towards a new all-time high (ATH). The question now is whether FLOKI will also embark on a similar bullish trajectory.
Since November, both meme currencies have displayed a bullish flag pattern, prompting speculation about a potential breakout for FLOKI.
Anticipating FLOKI’s Price Movement
The upward momentum in November enabled FLOKI to surpass the barrier at $0.0002 and subsequently validate it as a reliable support level. Lately, this level has served as a crucial entry point for bulls, setting the stage for a possible breakout in the near term.
A significant breach above the 78.6% Fib level ($0.00027) has the potential to propel the memecoin towards its 2024 peak of $0.00035.
Looking at the shorter time frame, the immediate target on the upside stood at $0.00033, based on the channel pattern’s height.
However, a breach beneath the channel would negate the optimistic outlook and drag FLOKI towards the bearish target of $0.00014.
It’s essential to highlight that technical indicators on the 3-day chart displayed positive signals, indicating strong price momentum (Stochastic RSI) and an influx of capital (CMF). These factors increased the likelihood of a bullish scenario over a bearish one.
Whales Enter the Picture
Another potential bullish catalyst stems from heightened demand among whale investors. During the weekend, wallets holding more than 1 billion FLOKI tokens boosted their holdings from 78.5 billion to 80.4 billion, accumulating 1.9 billion tokens within 48 hours.
This accumulation suggests that significant players anticipate a potential upsurge in FLOKI, akin to a bullish breakout.
If this scenario unfolds and mirrors PEPE’s trajectory, a potential gain of around +20% could be within reach. However, a drop below $0.00020 would nullify the positive momentum.
Disclaimer: The views expressed do not constitute financial advice and are solely the author’s opinion.