- FLOKI’s popularity was high as its social metrics skyrocketed.
- The meme coin has seen a slight price correction, but the trend may not last.
Meme coins have been creating a lot of buzz lately, including Floki Inu [FLOKI]thanks to the rise in their popularity.
At press time, FLOKI price has broken out of an uptrend, which could result in a bullish rally.
The bullish movement of FLOKI
AMBCrypto’s analysis of FLOKI’s daily chart revealed an interesting development. After peaking in mid-March, the price of the meme coin began to move in a bull flag pattern.
It continued to consolidate inside the pattern for over a month and finally broke out on May 4th. A breakout above the bull flag suggests that FLOKI price could soon touch its March high again.
Source: TradingView
Things on the social front also looked optimistic for the meme coin. By LunarCrush’s recent https://twitter.com/LunarCrush/status/1786599561018155026?t=5id9VHky97zYwsla10jzRw&s=19, The coin’s social metrics were skyrocketing, as over 48% of the market remained positive on FLOKI.
Also, the official X handle (formerly Twitter) of the meme piece 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 same coin has seen a correction. According to CoinMarketCapthe value of the meme coin fell by 1.5% in the last 24 hours.
At press time, it was trading at $0.0001909.
The uptrend could resume
Investors should not worry about price declines yet, as a breakout above a bull flag pattern is often followed by a retest of the support level. Therefore, a slight price decline before another bull rally is not uncommon.
AMBCrypto found that a possible reason for the recent price drop could be high liquidation. The liquidation of the meme coin rose sharply to $0.0002, after which its price fell.
Source: Hyblock Capital
AMBCrypto’s analysis of Santiment data suggests the downward trend may not last. For example, after an increase, FLOKI’s funding rate dropped.
In general, prices tend to move in the opposite direction to the financing rate. Its MVRV ratio has also remained quite high, which can be considered a bullish signal.
Nonetheless, its currency inflow increased, suggesting increased selling pressure.
Source: Snatiment
To better understand whether the bull rally would resume, AMBCrypto then checked the daily chart of the meme coin.
Read Floki Inu [FLOKI] Price prediction 2024-25
According to our analysis, the Chaikin Money Flow (CMF) of the meme coin recorded a slight increase and was heading even further above the neutral mark.
Its MACD also displayed the possibility of a bullish crossover. These metrics and indicators suggest that the chances of FLOKI price becoming bullish again in the coming days were high.
Source: TradingView
