- FLOKI managed to break its internal bearish structure and had a bullish bias.
- The lack of organic growth and sustainable demand could hamper the bulls’ efforts.
FLOKI [FLOKI] saw a 15 billion token burn proposal passed with an overwhelming majority last week. This encouraged investors about the deflationary nature of the memecoin. The bullish triangle The chart pattern was also noticed by analysts.
A recent AMBCrypto report highlighted the lack of new addresses despite price growth in May. A rise in bearish positions was also noted, both of which suggested the token lacked real strength.
Does the price promotion compensate for the shortcomings in the chain?
Source: FLOKI/USDT on TradingView
The technical indicators showed mixed signals. The daily RSI was solidly bullish at 67, but the CMF was below 0, indicating significant selling pressure over the past ten days.
Despite this, the price was able to break a significantly lower April high when FLOKI was in a retracement phase. This move was a sign of strength from the bulls and showed a bullish market structure.
The next targets are the $0.000313 and $0.000366 levels. The former is the March high, while the latter is a Fibonacci extension level plotted based on the previous impulse move on the higher time frame.
The short-term metrics indicate that bullish pressure is increasing
While the Chaikin Money Flow on the 1-day time frame was bearish, the spot CVD on the 1-hour time frame showed a reversal in progress. It halted last week’s downtrend and has moved higher over the past 48 hours.
Realistic or not, here is FLOKI’s market cap in BTC terms
The price increase from $0.0002 to $0.000234 was also accompanied by an increase in Open Interest. This showed that speculators were eager to acquire the token and were convinced of greater profits. Short-term sentiment was therefore bullish.
Ideally, the $0.00021-$0.000225 region will be retested as support before the next rally. In that scenario, it would present a buying opportunity. On the other hand, a price drop below this area would be a bearish outcome.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.