The cryptocurrency market has faced a persistent downtrend in recent weeks, and meme-inspired tokens have not been spared. Floki, a popular meme coin, experienced a sharp decline, plummeting by 40% in the past month. Currently trading at $0.0001683, Floki saw a 4.5% drop in the last 24 hours alone, with its trading volume falling by 23.86% to $218.27 million.
Despite the downturn, some analysts remain optimistic about Floki’s future. Among them is CryptoTony, a respected figure in the cryptocurrency community. In his recent analysis, CryptoTony uses the Elliott Wave Theory, a technical analysis method that predicts future price movements based on identified wave patterns. According to his assessment, Floki is nearing the end of a corrective phase, specifically wave (iv).
CryptoTony’s analysis reveals that Floki significantly rose earlier this year, peaking at wave (iii). Following this peak, the price entered a downward correction, which he views as a natural retracement within a broader bullish trend. He suggests token may experience one last downward movement, a final flush, before completing the corrective wave.
This anticipated final dip is expected to bring its price down to a lower support level, setting the stage for a new upward movement. CryptoTony believes that once wave (iv) concludes, Floki could begin a new bullish phase, aiming for new highs. However, this optimistic outlook heavily depends on the overall performance of the broader cryptocurrency market.
Floki’s Current Market Analysis and Future Potential
According to Tradingview, meme coin is trading below both the 50-day and 100-day Exponential Moving Averages (EMA), key indicators of short and medium term trends. The 50 EMA is above the 100 EMA, indicating a recent bullish trend reversal.
At present, the token is hovering near a critical support level. If this level holds, it could challenge resistance levels indicated by the moving averages. However, failure to maintain current support could lead to testing lower levels at 0.00015 USDT and 0.00013377 USDT.
The Relative Strength Index (RSI) stands at 37.62, indicating that the coin is approaching oversold territory, suggesting a potential reversal during which buyers might re-enter the market.
While Floki has faced significant challenges amid the broader crypto market downturn, analysts like CryptoTony see potential for a rebound. If Floki successfully navigates its current corrective phase, it could be poised for a new bullish trend, reaching new heights. Investors will need to watch the key support and resistance levels closely and broader market trends to gauge Floki’s future trajectory.
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