- FLOKI surged by 11.28% on the weekly charts.
- The shift in market sentiment saw increased investor favorability for the memecoin.
Over the past week, memecoins have experienced a trend reversal after months of struggle. Amidst this upturn, Floki [FLOKI] has seen a potential trend reversal.
As of this writing, FLOKI was trading at $0.0001481. This marked a 5.4% increase over the past 24 hours. Also, the memecoin surged by 11.28% over the last week.
Prior to this, FLOKI had been on a downward trajectory, declining by 8.07% on monthly charts. However, since hitting a local low of $0.000111, the recent gains have outweighed losses.
Despite these gains, FLOKI remained 57.41% below its ATH of $0.0003462 recorded four months ago.
Therefore, the current market conditions raise the question of whether FLOKI is on the verge of a sustained recovery or a mere correction driven by market speculation.
Inasmuch, AMBCrypto’s analysis indicated that Floki had seen a strong upsurge, pushing the memecoin above its sustained descending trendline.
What FLOKI’s charts suggest
Source: TradingView
According to AMBCrypto’s analysis, Floki was experiencing a strong uptrend at press time.
This was shown by the Aroon line with the Aroon Up at 100% sitting above Aroon down 28.5%. Thus, the memecoin was enjoying a very strong uptrend with recent highs.
This level indicated that FLOKI was seeing strong bullish momentum, suggesting that buyers were dominating the market.
The Directional Movement Index further supported this observation. At press time, the positive index at 24.54 sat above the negative index at 14.5, suggesting a sustained uptrend.
Source: Coinglass
Looking further, FLOKI’s total liquidation had declined over the past three weeks. As such, long position liquidation has declined from $356.8k to $11.9k at press time.
This showed investors’ confidence in the memecoin’s prospects, anticipating prices to rise.
Source: Coinglass
This market sentiment is further supported by a positive OI-Weighted Funding Rate. Thus, most investors are taking long positions and even willing to pay premium to hold their positions.
This is another sign of market confidence.
Source: Santiment
Finally, exchange inflow has declined over the past week, from a high of 4.63 billion tokens to 7.06 million at press time.
Realistic or not, here’s FLOKI’s market cap in BTC’s terms
This signaled holding behavior, with investors storing their assets in private and cold wallets. Such market behavior implied that investors were anticipating further price gains.
Simply put, FLOKI was experiencing a strong positive market sentiment at press time. If the current market conditions hold, the memecoin will break out from the next significant resistance level at $0.000161 in the short term.
