FLOKI has been displaying a pattern reminiscent of its breakout in January 2024, where a period of consolidation was followed by a surge towards its all-time high of $0.00030.
During the first quarter of 2024, this memecoin experienced a significant 640% rally, taking advantage of the overall market uptrend. With the trading volume stabilizing and the RSI hovering around neutral levels, could this be signaling a period of calm before another potentially explosive rally?
Over the last week and a half, FLOKI has been fluctuating between $0.0000900 and $0.0000100, with the MACD indicating a possible bullish crossover.
Despite reaching a peak of $0.0002800 after the recent elections, the memecoin has seen a series of four consecutive lower lows, indicating a sustained bearish trend.
With the current price sitting 66% below its peak, a clear breakout seems to be evading FLOKI unless there is a surge in buying activity to counteract the downward trend.
Assessing FLOKI’s Fundamental Factors
Whale accumulation has remained consistent amidst the market’s volatility, with substantial amounts flowing into wallets holding between 1K and 1M FLOKI – supporting the ongoing consolidation phase.
In the derivatives market, Open Interest (OI) has risen by 6%, suggesting a renewed interest in speculation. Moreover, the trading volume spiked by 104.19% to reach $387.41 million.
However, at present, the 3% price decline in FLOKI appears to be a result of a long squeeze, increasing the possibility of further liquidations if buyers do not step in to counter the selling pressure.
Despite this, the consistent whale accumulation and solid fundamentals indicate that the memecoin might be on the verge of an upturn once the market sentiment improves. To recreate its notable breakout from 2024, FLOKI must break through key resistance levels, starting with $0.000133 in the near future.
A successful breach could signal a shift in the trend, but a failure to do so might prolong the consolidation phase.