Over the last 24 hours, Floki (FLOKI) has been in a bullish trend despite an early bull-bear tussle that dipped the price to an intra-day low of $0.0001957. After establishing support, bulls nullified the bear trend, soaring the FLOKI price to an intra-day high of $0.0002158 before facing stiff resistance.
However, despite the resistance, FLOKI was bullish as of press time, exchanging hands at $0.0002126, a 7.67% surge from the support level.
FLOKI/USD 24-hour price chart (source: CoinMarketCap)
During the rally, FLOKI’s market capitalization and 24-hour trading volume surged by 7.75% and 96.94%, respectively, to $2,033,456,222 and $379,619,406. This surge reflects increased investor interest, with FLOKI managing to be among the top gainers, according to CoinMarketCap data.
Why is the FLOKI Price Soaring?
On May 13, the FLOKI team proposed burning 15,246,000,000 $FLOKI tokens. This burn follows the burning of 190,918,585,431.84 $FLOKI tokens, which were recovered in February early this year from the Multichain bridge.
In line with the decision of the #Floki DAO, 15,246,000,000 $FLOKI tokens will be burnt on May 22, 2024.
The #Floki DAO voted in favor of burning 15,246,000,000 $FLOKI tokens, with an overwhelming majority of 99.84% voting in favor of the burn.
Stay tuned for further updates! https://t.co/aHBUmTepbD
— FLOKI (@RealFlokiInu) May 20, 2024
This burn proposal was ruled in favor on May 15 with a majority vote of 99.84%, and the team announced the burn in a week. Consequently, the team scheduled the burn for tomorrow, the 22nd, which is anticipated to induce a bull rally.
Another factor influencing the bull rally is the overall optimism in the crypto market, which brought about the Bitcoin price rally above the $71,500 level. This optimism is reflected in the 7.81% surge in the crypto market cap to $2.61T, with the Fear and Greed index at 70 (Greed).
Concurrently, on the FLOKI derivatives data, the trading volume has surged by 55%, reaching $96.22M, suggesting that traders are increasing their positions in anticipation of a continued bull rally. Similarly, open interest has gone up by 8.26% to $19.17M. This increase in open interest alongside rising volume indicates new money flowing into FLOKI derivatives, possibly betting on future price movements.
FLOKI/USD Technical Analysis
This bullish momentum led to a FLOKI price peak around late February. Following this peak, the price experienced a correction and has been consolidating within a triangle pattern, bounded by two converging trendlines. The triangle formation generally indicates a consolidation period before a potential breakout.
The 50-day Simple Moving Average (SMA) is positioned above the 200-day SMA, suggesting a bullish trend. This configuration, often called a “Golden Cross,” typically signals a potential for further upward momentum. The price is also trading above the 200-day SMA, reinforcing the long-term bullish outlook.
In addition, the Stochastic RSI indicator shows a reading of 70.01 (blue line) and 68.54 (orange line), indicating that the asset is in the overbought territory. This suggests that a short-term correction or pullback might be on the horizon as traders may look to take profits at these levels.
FLOKI/USD 24-hour price chart (source: TradingView)
However, the RSI (14) is currently at 61.15, which is in the bullish zone but not overbought. This suggests that while there is positive momentum, there is still room for further price appreciation before reaching overbought conditions.
Consequently, the lower boundary of the triangle pattern and the 50-day SMA around 0.0001795745 provide key support levels. A breakdown below these levels could signal a bearish reversal, potentially targeting the 200-day SMA at 0.0000991552. The upper boundary of the triangle and the recent high near 0.0002366083 act as significant resistance levels. A breakout of the FLOKI price above this level could lead to further gains, with the next target around 0.0003000000 as indicated by the measured move from the triangle pattern.
FLOKI Potential Scenarios
Bullish Breakout: If the price breaks above the upper trendline of the triangle and the resistance level at 0.0002366083, it could trigger a bullish rally toward the target of 0.0003000000. The confirmation of this move would be supported by high trading volumes and sustained price action above the breakout level.
Conversely, if the price breaks below the lower trendline of the triangle and the support level around 0.0001795745, it may lead to a bearish trend toward the 200-day SMA at 0.0000991552. A breakdown would likely be accompanied by increased selling pressure and a decrease in overall market sentiment.
