Floki Inu (FLOKI) has exhibited a remarkable recovery since its mid-August slump, outperforming Bitcoin (BTC) by a significant margin. This bullish trend has sparked renewed interest in the memecoin, with analysts predicting a potential 20% price increase.
Technical Indicators Suggest Upward Momentum
The daily chart for FLOKI reveals a positive market structure, characterized by a bullish crossover of the Moving Average Convergence Divergence (MACD) indicator. This suggests that the downward momentum is weakening, paving the way for a potential price surge.
Moreover, the On-Balance Volume (OBV) has been steadily increasing, indicating growing buying pressure. However, it remains below its late-July highs, suggesting that further accumulation is needed to sustain a significant price rally.
Liquidity Levels Favor Bullish Outlook
Analysis of FLOKI’s liquidity levels reveals a strong bullish bias. The cumulative liq levels delta is significantly positive, indicating a substantial difference between long and short liquidation levels. This suggests that a potential short squeeze could drive the price higher.
However, traders should remain cautious as there are still significant liquidity clusters above the current price level, which could act as resistance. A breakdown below the $0.000128 support level could signal a short-term bearish reversal.
Potential Price Targets
Based on the current technical analysis, a 20% price increase for FLOKI appears feasible. If the memecoin can successfully retest the $0.000138 region as support, it could target $0.000176, the next significant resistance level.
Conclusion
Floki Inu’s recent recovery and positive technical indicators suggest a bullish outlook for the memecoin. However, traders should exercise caution and be mindful of potential short-term reversals. The ability of FLOKI to break through key resistance levels will be crucial in determining the extent of its price rally.