- FLOKI is showing a bullish outlook in the near term after breaking above the local resistance zone in June.
- On-chain indicators suggest that the long-term outlook is bullish, with short-term holders likely to realize profits.
At the time of writing, FLOKI was trading above the resistance zone it encountered in late June. In fact, it has formed a bullish pattern and is predicted to rise in value by 60% in the coming weeks.
On-chain indicators gave good news for bulls a week ago, quickly spotting a 41% price rally from the Fib retracement level, and technical analysis revealed that the upward momentum was likely to continue, at least in the short term.
Northward movement is expected again
FLOKI/USDT chart. Source: TradingView
The meme coin tested the 78.6% retracement level for the second time in four months. These Fib retracement levels were plotted based on FLOKI’s March rally and remain relevant.
With the $0.000176 level turning into support, the bulls are targeting $0.000222 as the next resistance. The daily RSI suggests that the momentum turned bullish after climbing above the neutral level of 50. However, the A/D indicator did not bounce back as quickly.
Although the previous downtrend was halted, the uptrend was slow, indicating weak buying pressure. This did not signal a divergence, but it could be a warning sign for buyers in the market.
Network-wide accumulation has resumed
sauce: Santiment
The average age of coins is trending up after a sharp drop in early June, which can be interpreted as a sign of accumulation. The 30-day MVRV has risen into positive territory, which could lead to selling pressure due to short-term profit-taking activity.
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Finally, social volume is down from its peak in late May. If the bullish trend continues, we could see increased engagement and stimulate demand in the coming weeks.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and consists solely of the opinions of the authors.
