FLOKI, the popular memecoin, has experienced a surge in investor interest following a short-term pullback from its Monday rally. This renewed accumulation trend could potentially signal a bullish outlook for the token in the near future.
Chart Analysis and Technical Indicators
From a technical perspective, FLOKI’s market structure remains bullish despite a recent retracement. The token has found support at key levels, including the lower range of an ascending channel and a bullish order block. These support levels coincide with a demand zone, making a pullback to these areas a potential buying opportunity.
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Additionally, the stochastic RSI has shown a reversal, further supporting an upward price projection. However, a break below the channel’s range-low could invalidate this bullish thesis.
On-Chain Indicators Point to Accumulation
A significant indicator of bullish sentiment is the rising accumulation trend observed in FLOKI. Investors are actively moving their tokens off centralized exchanges, suggesting a strong belief in a future price increase. Furthermore, the declining supply on exchanges indicates reduced selling pressure, creating favorable conditions for a potential rally.
Read more:FLOKI Surges Amid Bearish Market: How the Fifth-Largest Memecoin Is Defying the Downtrend
Market Sentiment and Price Outlook
While the on-chain indicators are positive, the overall weighted sentiment remains neutral, suggesting that speculators are cautious after the recent pump. Nonetheless, the pullback to key support levels could present new entry points for FLOKI investors, especially if the uptrend momentum regains traction.
Read moreFloki Inu (FLOKI) Shows Strong Recovery Post-August Slump: Analysts Forecast 20% Price Increase
Conclusion
FLOKI’s recent accumulation spree and positive technical indicators suggest a potential uptrend. However, it’s essential to exercise caution and consider the overall market sentiment. Investors who believe in FLOKI’s long-term prospects may find the current pullback to be an attractive buying opportunity.
