FLOKI’s price broke above a bullish flag pattern, which might allow the memecoin to touch its March highs again.
- FLOKI’s popularity was high as its social metrics soared. The meme coin witnessed a slight price correction, but the trend might not last.
Meme coins have created a lot of buzz of late, including Floki Inu [FLOKI], thanks to the surge in their popularity.
At press time, the price of FLOKI broke above a bullish pattern, which might translate into a bull rally.
FLOKI’s bullish move
AMBCrypto’s analysis of FLOKI’s daily chart revealed an interesting development. After peaking in mid-March, the meme coin’s price started to move inside a bullish flag pattern.
It continued to consolidate inside the pattern for over a month and finally broke out on the 4th of May. A breakout above the bullish flag pattern suggested that FLOKI’s price might soon touch its March high again.
Source: TradingView
Things on the social front also looked optimistic for the meme coin. Per LunarCrush’s recent tweet, the meme coin’s social metrics were soaring, as over 48% of the market remained positive on FLOKI.
Also, the meme coin’s official X (formerly Twitter) handle mentioned that FLOKI was trending on the social media site, reflecting its popularity.
However, despite these optimistic signs, the meme coin’s price witnessed a correction. According to CoinMarketCap, the meme coin’s value plummeted by 1.5% in the last 24 hours.
At press time, it was trading at $0.0001909.
The bull trend might resume
Investors should not be worried yet about the price drop, as a breakout above a bull flag pattern is often followed by a retest of the support level. Therefore, a slight price drop ahead of another bull rally is not rare.
AMBCrypto found that a possible reason for the recent price decline could be high liquidation. The meme coin’s liquidation increased sharply to the $0.0002 mark, after which its price dropped.
Source: Hyblock Capital
AMBCrypto’s analysis of Santiment’s data suggested that the declining trend might not last. For instance, after an increase, FLOKI’s Funding Rate dropped.
Generally, prices tend to move the other way around than the Funding Rate. Its MVRV ratio also remained pretty high, which can be inferred as a bullish signal.
Nonetheless, its exchange inflow spiked, suggesting a rise in selling pressure.
Source: Snatiment
To better understand whether the bull rally would resume, AMBCrypto then checked the meme coin’s daily chart.
Read Floki Inu’s [FLOKI] Price Prediction 2024-25
As per our analysis, the meme coin’s Chaikin Money Flow (CMF) registered an uptick and was headed further above the neutral mark.
Its MACD also displayed the possibility of a bullish crossover. These metrics and indicators suggested that the chances of FLOKI’s price turning bullish again in the coming days were high.
Source: TradingView
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