Floki Inu (FLOKI) witnessed a downward trend in December and January, but the market structure showed an upward trend in a daily timeframe on January 20th. This could indicate that the meme token trend is gradually climbing upwards.
The Rise in FLOKI
With FLOKI’s value increasing by 351%, the slow trend has shifted upwards in the last ten days. At the time of writing, there was a slight decrease of just under 12% in the last twelve hours. This 12% drop makes the drawing of Fibonacci retracement levels seem possible. However, as the bullish sentiment behind FLOKI remains strong, it could continue to rise and reach new highs in the coming days.
In the cryptocurrency, the 12-hour chart’s relative strength index (RSI) rose to 91 on March 2nd. The closest value to this was the meme token‘s 87.1 recorded in the second half of October last year. It highlighted just how extreme the current momentum is. On the other hand, the Fibonacci retracement levels in the popular cryptocurrency might have highlighted areas where buyers could re-enter long FLOKI positions. The number of active addresses in the cryptocurrency has increased rapidly over the past few days as the prices have gained value quickly. Along with this, there has also been a significant increase in the dormant circulation.
Expectations for FLOKI
This situation indicates that previously idle FLOKI tokens are being moved, which could be a sign of holders taking profits. In parallel, the average age of cryptocurrency metric also decreased, which could strengthen the sentiment that supports this idea. The boundary that occurred in an encouraging manner for the bulls was close to the peaks last seen on January 10th. This could indicate that the accumulation of the meme token has increased and is being held for a longer period. The indicated measurement emphasized that despite the increase in dormant circulation, the token movement was not very high. Therefore, according to experts, FLOKI could continue to recover, but bulls may wait for better risk-reward conditions to buy more.
