The Floki coin has recently shown signs of a trend reversal in the daily chart, as the previous sideways price action began to form new higher highs and higher lows. If we connect the lows of the ongoing price rally, a new ascending trendline emerges, potentially supporting a bullish recovery. Traders may use this support to prolong a sustained bull run, but is this optimism warranted?
The rising trendline could carry a sustained recovery in the Floki price, and the potential breakout from $0.000041 resistance may accelerate buying momentum in the market. The intraday trading volume in Floki coin is $51.2 Million, indicating a 33% gain. On May 11th, Floki price rebounded from the aforementioned support trendline with a morning star candle; a reversal pattern at strong support that may increase buying pressure in the market, possibly pushing the memecoin to higher levels.
With sustained buying, Floki price could surge 12% to breach the immediate resistance of $0.00004. This potential breakout could offer buyers a significant launchpad, raising the memecoin’s market value 58% higher to hit the supply zone of $0.0000571. However, there are concerns that the bullish momentum might not be sustainable, and a breakdown below the support trendline could weaken the bullish thesis.
In the bigger picture, the Floki price shows the formation of a rounding bottom pattern, a famous bullish reversal that might encourage accumulation from traders and lead to a sustained recovery. Under this pattern’s influence, Floki price is likely to hit the neckline of $0.000068 for a bullish breakout – but this also comes with its fair share of skepticism, considering the market’s neutral sentiment.
The daily Relative Strength Index (RSI) wavering around the midline suggests no clear bias in the market. Moreover, Floki price trading above the daily Exponential Moving Averages (EMAs) (20, 50, and 100) points towards an overall bullish trend. However, it is essential to consider that the market is volatile and can shift direction rapidly.
In conclusion, while the Floki coin shows promising signs of a bullish reversal, it is crucial to be cautious and conduct thorough market research before investing in cryptocurrencies. As always, the market conditions can change rapidly, and no investment is without risks.
Source: Coingape
