- FLOKI’s popularity grew as social metrics skyrocketed.
- Memecoin witnessed a slight price correction, but this trend may not last.
Meme coins have been creating a lot of buzz lately. Floki Inu [FLOKI]thanks to its surge in popularity.
At the time of writing, FLOKI price has broken out of a bullish pattern, which could lead to a bull run.
FLOKI bullish movement
AMBCrypto’s analysis of FLOKI’s daily chart reveals an interesting development. After reaching its peak in mid-March, the meme coin price started moving within a bullish flag pattern.
It continued to consolidate within this pattern for over a month before finally breaking out on May 4th. The break above the bullish flag pattern suggested that FLOKI price could soon reach the March highs again.
Source: TradingView
Memecoin also looked optimistic on the social front. According to recent information from LunarCrush, Tweet, The meme coin’s social metrics soared as over 48% of the market remained positive towards FLOKI.
Also, the official X (formerly Twitter) handle of Meme Coin mentioned FLOKI was said to be trending on social media sites reflecting its popularity.
However, despite these optimistic signs, the meme coin price witnessed a correction.according to coin market capMemecoin’s value plummeted by 1.5% in the past 24 hours.
At the time of writing, it was trading at $0.0001909.
Bullish trend may resume
Investors do not need to worry about the price falling just yet, as a breakout of a bull flag pattern is often followed by a retest of the support level. Therefore, it is not uncommon for prices to decline slightly ahead of further bull market gains.
AMBCrypto has discovered that a possible reason for the recent price drop could be high liquidations. The memecoin liquidation value soared to $0.0002, and the price subsequently declined.
Source: Hyblock Capital
AMBCrypto’s analysis of Santiment data suggests that the downward trend may not continue. For example, after increasing, FLOKI’s funding rate decreased.
In general, prices tend to move inversely to funding rates. The MVRV ratio also remains fairly high, which we can deduce is a bullish signal.
Nevertheless, foreign exchange inflows have surged, suggesting increasing selling pressure.
Source: Sunatimento
To better understand whether the bullish rally will resume, AMBCrypto checked the daily chart of Memecoin.
read Floki Inu [FLOKI] price prediction 2024-25
According to our analysis, the meme coin Chaikin Money Flow (CMF) registered an increase and was further above the neutral mark.
Its MACD also showed bullish crossover potential. These indicators and indicators suggest that FLOKI price is likely to turn bullish again in the coming days.
Source: TradingView
