A cryptocurrency market expert has indicated that the meme token Floki (FLOKI) is poised for a rally towards new all-time highs. The pseudonymous analyst Bluntz shared with his 306,200 followers on the social media platform X that FLOKI appears to have completed an ABC correction on the daily chart.
Analysis Methodology
Bluntz employs the Elliott Wave Theory, which suggests that an asset in an upward trend tends to initiate a five-wave movement after completing an ABC correction. This theoretical framework serves as a basis for forecasting potential price movements.
Future Prospects for FLOKI
The analyst noted that FLOKI has shown an ABC correction from the highs in November and is beginning a fresh upward movement. He stated that reaching a new all-time high is inevitable before the end of the cycle.
“FLOKI is, in my opinion, another major meme and turbo in an upward trend. An ATH is unavoidable before the end of the cycle.” – Bluntz
Impact of the US Dollar Index (DXY)
Bluntz continues to monitor the US Dollar Index (DXY), which investors use to gauge risk appetite. He pointed out that DXY is on a downward trajectory after maintaining significant Fibonacci resistance levels, completing an ABC upward correction. He anticipates the index will drop below 100.
“DXY now appears at its peak position, hitting 108 as I expected and breaking a crucial 0.618 level. I expect a long and slow ABC downward movement.” – Bluntz
A declining DXY graph typically indicates that investors are selling off USD to accumulate risk assets. As of this writing, DXY hovers around 108.
Market Trends
Bluntz remarked that risk assets have performed well despite the DXY’s rise, a situation that seems counterintuitive. He believes that by 2025, DXY will revert below 99.
The future of meme tokens like FLOKI is shaped by analysts’ technical assessments and prevailing market trends. Investors can make more informed decisions by evaluating such data.
