Over the weekend, there was a notable resurgence in the popularity of meme coins, with PEPE taking the lead in a remarkable rally to achieve an all-time high (ATH). The big question now is whether FLOKI will be able to replicate a similar impressive breakout.
Both FLOKI and PEPE have exhibited a bullish flag pattern since November, sparking discussions about the potential for FLOKI to experience a breakout as well.
FLOKI’s Potential Price Movement
Following the upward trend in November, FLOKI successfully surpassed the obstacle at $0.0002 and has since tested it as a firm support level. Recently, this level has served as a crucial entry point for bullish investors, positioning it as a possible launching pad for FLOKI’s breakout.
A breakthrough above the 78.6% Fibonacci level ($0.00027) has the potential to propel the memecoin towards its 2024 peak of $0.00035.
In the short-term, the immediate price target stands at $0.00033 based on the channel pattern’s height.
Nonetheless, a breach below the channel pattern would invalidate the optimistic outlook, leading FLOKI down towards the bearish target of $0.00014.
It is essential to highlight that the technical indicators on the 3-day chart exhibit bullish signals, showing strong momentum in price movement (Stochastic RSI) and significant capital inflows (CMF). These factors enhance the likelihood of a bullish projection rather than a bearish scenario.
Impact of Whales in the Market
One of the potential drivers for a bullish trend is the heightened demand from whales. Notably, over the weekend, wallets holding more than 1 billion FLOKI tokens increased their holdings from 78.5 billion to 80.4 billion, reflecting an accumulation of 1.9 billion tokens within a 48-hour window.
This influx indicates that prominent players in the market anticipate a surge in FLOKI’s value, potentially leading to a bullish breakout.
If this scenario unfolds, mirroring PEPE’s trajectory, a potential gain of around 20% could materialize. However, a dip below $0.00020 would cast doubts on the bullish trend.
Disclaimer: The views expressed in this analysis are personal opinions and should not be considered as financial, investment, or trading advice.