FlokiFi Locker has reached an all-time high Total Value Locked (TVL) of $165.6 million, surpassing well-known memecoins such as Dogecoin and Shiba Inu. Each lock on the Ethereum (ETH) and Binance Smart Chain (BSC) networks triggers a deflationary burn process, leading to a reduction in the supply of Floki [FLOKI].
With this significant achievement, FLOKI is in a position to utilize its current momentum to potentially initiate a price breakout.
Do Technical Indicators Hint at a Potential Bullish Surge?
At present, FLOKI’s price is consolidating and trading within a tight range around $0.000136. Analysis of the Bollinger Bands indicates a period of low volatility, often indicating an approaching breakout.
The primary question that arises is the direction in which the price will move. The Relative Strength Index (RSI) currently stands at 51.45, positioning it in a neutral zone and not indicating overbought or oversold conditions.
Given this neutral momentum, traders are advised to closely observe price movements for potential upward or downward trends. A breakout above the upper range of the Bollinger Bands could signify a bullish surge, although vigilance is recommended.
Increasing Holder Base as a Positive Signal?
As of mid-September, the total number of FLOKI holders had risen to 595, reflecting a growing sense of investor confidence and suggesting an uptick in demand for the token.
Furthermore, a rise in demand coupled with a decrease in supply due to deflationary burns could propel the price upwards in the coming weeks. The growing holder base serves as a crucial bullish indicator that investors should monitor closely.
Deciphering On-Chain Data: Insights and Trends
The on-chain data offers a mix of signals. While the “In the Money” metric displays a bullish figure of 0.82%, other metrics paint a less optimistic picture. Network growth has slowed by 0.33%, and significant transactions have dropped by 12.36%, indicating bearish sentiment.
Despite some positive indicators, a level of caution is advisable as these bearish factors could impact short-term price movements.
Examining Liquidation Data: Can Bulls Maintain Control?
Recent liquidation data reveals that long positions outweigh shorts, with $3.82K in long liquidations reported on September 22. This imbalance suggests that bullish traders continue to dominate the market.
The relatively low rate of liquidations implies market stability, leaving room for a potential upward price shift.
Is FLOKI Poised for a Breakout?
With a record TVL, an expanding holder base, and positive on-chain signals, FLOKI appears to be primed for a breakout.
Nevertheless, mixed on-chain data and subdued volatility might lead to market indecision. While FLOKI shows promise in its bullish trajectory, traders should exercise caution and await confirmation signals before making any significant moves.