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Thanks to the recent surge in popularity of meme tokens, Floki Inu (FLOKI) has made significant noise. At the time of writing, FLOKI’s price has surpassed its upward trend, which could turn into a bullish rally.
Graphical Analysis of FLOKI
FLOKI’s daily chart analysis revealed an interesting development. After reaching a peak in mid-March, the meme token price began moving within a bullish flag formation. It continued to strengthen within this pattern for over a month and finally broke out on May 4th. A break above the bullish flag pattern indicated that FLOKI’s price could soon reach March’s highest level again.
Developments on the social front also look optimistic for the meme token. According to the latest tweet from LunarCrush, the meme token’s social metrics are rapidly rising because more than 48% of the market remains positive about FLOKI. Additionally, the meme token’s official X username trended on FLOKI’s social media site, reflecting its popularity.
Price Prediction for FLOKI
Despite these optimistic signs, there was a correction in the meme token’s price. According to CoinMarketCap, the value of the meme token dropped by 1.5% in the last 24 hours. Investors should not yet worry about the price drop as a break above the bull flag pattern is often followed by a retest of the support level. Therefore, a slight price drop before another bull rally is not uncommon.
The possible reason for the recent price drop could be high liquidation. The meme token’s liquidation sharply rose to $0.0002 and then the price dropped. The analysis related to data from the crypto analytics firm Santiment suggested that the downtrend might not continue. For instance, FLOKI’s funding rate dropped after the increase. Generally, prices tend to move in the opposite direction of the funding rate. The MVRV ratio also remained quite high, which could be considered a bullish signal. However, an increase in exchange inflow indicates a rise in selling pressure.
