Of late, Floki has been in the headlines, with investors apparently mixing this frenzy with a mix of technical analysis and improving on-chain data.
Floki, a meme coin named after Elon Musk’s Shiba Inu dog, is making waves within the crypto market. According to analysts such as CryptoAnalystHub and Javon Marks, this token is predicted to see colossal gains.
But is this meme coin really due for major upside price action, or are hype and expectations running ahead of the fundamentals?
On Falling Wedges And Potential Breakouts
CryptoAnalystHub, a prominent analyst on social media, has successfully plotted a Bullish Falling Wedge in Floki’s price chart. This is generally indicative of the possibility of a price reversal, according to the respective technical indication.
$FLOKI 🔥🚀
Update:(Formation of a Bullish Falling Wedge pattern is done )✅
Breakout is also happens, Expected move for short term buyers is 90-100% soon💰🎯#FLOKI #FLOKIUSDT #FLOKIBTC #SIGNALS #ALTSEASON #ALTCOINS #USDT$DOGS $REI $NULS $PDA $PHA $VIDT $HARD $DCR $FLUX… pic.twitter.com/ELtuhsTnks— CryptoAnalystHub (@Analysts_Hub) August 27, 2024
In other words, the pattern signals that the recent downtrend for Floki might be at its last stage, thus giving way to an upward rally.
The Falling Wedge, characterized by two converging trendlines with a downward slope, has served to squeeze Floki’s price action between the lines and has printed a series of lower highs and lower lows.
According to CryptoAnalystHub, a breakout above the upper trendline has already occurred, which would mean that Floki is at the cusp of a major bullish phase.
However, the analyst explains that if Floki is to sustain an uptrend, it needs to be able to push above pivotal resistance areas around $0.00021176 and $0.00027969.
These have been resistive zones showing renewed selling pressure in the past and, thus, are crucial for the digital asset to break through.
Keeping An Eye On Floki
Adding to the bullish sentiment, crypto analyst Javon Marks recently flagged Floki as one to watch. On X, Marks projected over 96% gains in store for Floki once a Hidden Bull Divergence has been confirmed.
He noted that a break above $0.0002761498 would unlock the door for even healthier gains, pointing to the next key level at $0.0005467298 – a further upside of 90% from this point, further building on the optimistic prospects into the future of Floki.
Coming off of a recently confirmed Hidden Bull Divergence, sights for $FLOKI (Floki Inu), in response to this divergence is still on an over 96% climb back above the $0.0002761498 target which may only open up even more room for climbing!
With a break above this target,… https://t.co/w3iDJDPeZU pic.twitter.com/SSr3iaLB5F
— JAVON⚡️MARKS (@JavonTM1) August 22, 2024
On-Chain Data Favor The Bulls
Beyond technical analysis, on-chain data also looks promising for Floki. Noticeable growth in the network is seen, as depicted by the increase in new addresses.
This could indicate a trend that fresh capital has started flowing into the Floki ecosystem and may be pushing up demand and, therefore, its price.
Further supporting this is the increase in daily active addresses. Increased activity often suggests that interest and momentum are building within a community, which is usually a precursor to increased prices.
Is The Hype Justified?
While this might be so from the technical and on-chain indicators for Floki, an un-cautious approach towards such predictions is warranted, seeing that it is a meme coin. Meme coins are very prone to volatility and hence dramatic shifts in sentiment. That being said, while Floki has had a decent run in recent days, investors should be prepared to lose it all.
Technical patterns, on-chain data, and the increase in investors’ interest support the great price surge of Floki. But it remains to be seen whether this meme cryptocurrency would sustain this. After all, as they say, within the crypto space, expect the unexpected.
Featured image from Gadgets 360, chart from TradingView