Why could FLOKI rise 24%?

• FLOKI price breaks above the downtrend line with an imminent rally.
• On-chain data shows that FLOKI’s latent wallets are active, signaling a bullish move.
• A daily candle close below $0.00011 would invalidate the bullish thesis.

FLOKI (FLOKI) price broke above the downtrend line and rose 10%. At the time of writing on Wednesday, it has continued its ongoing rally and is trading up 4.4% at $0.00015. Furthermore, the on-chain data hint supports the bullish trend as evidenced by the active and latent wallets.

FLOKI price shows the potential for a rally after breaking the downtrend line

FLOKI’s price broke above the downtrend line (drawn by connecting several June 7 highs) on August 22 and rose 10% over the next two days. On Wednesday, it finds support at the 50-day exponential moving average (EMA) of around $0.00014 and is trading up 4.4% at $0.00015.

If the 50-day EMA at $0.00014 and the daily support level at $0.00013 hold as support, FLOKI could rise 24% from its current trading level of $0.00015 to retest the July 27 high of $0.00018.

On the daily chart, this rally is supported by indicators such as the Relative Strength Index (RSI) and the Extraordinary Oscillator (AO), which are trading comfortably above their respective neutral levels of 50 and zero. These momentum indicators strongly indicate bullish dominance.

FLOKI/USDT Daily Chart

Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP), nearly 826 addresses have accumulated 9.82 billion FLOKI tokens at an average price of $0.000143. These addresses bought the dog-based meme token between $0.000141 and $0.000143, making it a key area of ​​support.

Interestingly, the mentioned area from a technical analysis perspective, the $0.000143 level, coincides with the IOMAP findings, making this area a key reversal area to watch.

FLOKI IOMAP diagram

Santiment’s Age Consumed Index aligns with the bullish outlook from a technical perspective. Spikes in this index suggest that dormant tokens (tokens stored in wallets for a long time) are on the move and can be used to identify short-term local tops or bottoms.

For FLOKI, history shows that peaks have been followed by an increase in the price of FLOKI. The most recent rally on August 20 also forecast that FLOKI was poised for an uptrend.

FLOKI Age Consumed graph

Despite promising technical analysis and chain data, a lower low would form if the daily candle closes below the $0.00011 price level. This scenario would reverse the bullish market structure, which could cause FLOKI’s price to crash 14% to retest the August 5 low of $0.000095.