- FLOKI could soar by nearly 50% to reach $0.00021 if it closes its daily candle above the $0.000139 level.
- 57.52% of top traders held long positions at press time, while 42.48% held short positions.
After consolidating for almost a month, popular memecoin Floki [FLOKI] became poised for a significant upside rally amid this ongoing struggling cryptocurrency market.
Since late August 2024, FLOKI has been consolidating in a very tight zone between $0.000115 and $0.000132 levels.
However, the potential reason for this significant rally of over 50% is its bullish on-chain metrics, an impending breakout at the $0.000136 level, and an upcoming marketing announcement scheduled for the 24th of September, as shared by the FLOKI community.
Here’s why FLOKI could soar by 50%
According to AMBCrypto’s technical analysis, despite the breakout of the descending trendline, FLOKI failed to gain momentum, and was facing strong resistance near $0.000136 at press time.
It was trading below the 200 Exponential Moving Average (EMA) on a daily time frame, indicating a downtrend.
The 200 EMA is a technical indicator that traders and investors often use to determine whether an asset is in an uptrend or downtrend.
Source: TradingView
Based on the historical price momentum, if FLOKI closes its daily candle above the $0.000139 level, there is a strong possibility it could soar by nearly 50% to reach $0.00021 in the coming days.
Bullish on-chain metrics
This positive outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, FLOKI’s Long/Short Ratio was 1.34 at press time, indicating bullish market sentiment among traders.
Source: Coinglass
Additionally, its Futures Open Interest increased by 7.3% over the past 24 hours, and 3.2% in the past four hours.
This rising Open Interest suggested that traders were potentially building more long positions amid the upcoming breakout.
Traders and investors often use the combination of rising Open Interest and a Long/Short Ratio above 1 to build long positions.
At press time, 57.52% of top traders held long positions, while 42.48% held short positions. This data indicated that bulls were dominating the asset.
Current price momentum
At press time, FLOKI was trading near $0.000133 after experiencing a modest price surge of over 0.90% in the last 24 hours.
Realistic or not, here’s FLOKI’s market cap in BTC’s terms
During the same period, its trading volume increased by 38%, indicating higher participation from traders.
Meanwhile, the majority of cryptocurrencies, including Bitcoin [BTC], Solana [SOL], and XRP were struggling to gain momentum over the past 24 hours until press time.
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