- FLOKI’s popularity was high as its social metrics skyrocketed.
- The meme coin witnessed a slight price correction but the trend may not last.
Meme coins have generated a lot of buzz lately, including Floki Inu [FLOKI]thanks to the increase in popularity.
At press time, FLOKI price broke out of a bullish pattern, which could translate into a bullish rally.
FLOKI’s bullish movement
AMBCrypto’s analysis of FLOKI’s daily chart revealed an interesting development. After peaking in mid-March, the meme coin price began moving within a bullish flag pattern.
It continued to consolidate within the pattern for over a month and finally broke out on May 4. A break above the bullish flag pattern suggested that FLOKI price could soon reach its March high again.
Things on the social front also looked optimistic for the meme coin. According to the recent LunarCrush https://twitter.com/LunarCrush/status/1786599561018155026?t=5id9VHky97zYwsla10jzRw&s=19, The meme coin’s social metrics were skyrocketing as over 48% of the market remained positive on FLOKI.
Additionally, the official X (formerly Twitter) handle of the meme coin https://twitter.com/RealFlokiInu/status/1786828368719057092 that FLOKI was trending on the social media site, reflecting its popularity.
However, despite these optimistic signs, the price of the meme coin saw a correction. According CoinMarketCapThe value of the meme coin plummeted 1.5% in the last 24 hours.
At the time of this publication, it was trading at $0.0001909.
Uptrend could resume
Investors should not worry about the price falling just yet, as a break above a bullish flag pattern is usually followed by a retest of the support level.
Therefore, it is not uncommon for a slight price drop to occur before another bullish rally.
AMBCrypto found that a possible reason for the recent price drop could be high liquidation. The meme coin’s liquidation rose sharply to the $0.0002 mark, after which its price fell.
AMBCrypto’s analysis of Santiment data suggested that the downward trend may not last. For example, after an increase, FLOKI’s financing rate fell.
Generally, prices tend to move in the opposite direction to the financing rate. Its MVRV ratio also remained quite high, which can be inferred as a bullish signal.
However, its foreign exchange inflow skyrocketed, suggesting an increase in selling pressure.
To better understand whether the bullish rally would resume, AMBCrypto reviewed the daily chart of the meme coin.
Read Floki Inu [FLOKI] Price prediction 2024-25
According to our analysis, the meme coin’s Chaikin Money Flow (CMF) recorded a rally and headed further above the neutral mark.
Its MACD also showed the possibility of a bullish crossover. These metrics and indicators suggested that the chances of FLOKI price turning bullish again in the coming days were high.
Next: IS THIS threatening the Solana ecosystem? Yes, but here’s why SOL is safe
This is an automatic translation of our English version.
