FLOKI Price Setup Signals Potential for Rally to This Resistance

FLOKI is showing strong price action, with recent analysis suggesting it is at a pivotal point for a potential breakout. The asset has formed a resilient support at the range low, creating a favorable risk-to-reward setup for traders.

The bullish outlook is backed by a rounded bottom pattern, historically leading to significant rallies. With a 4.56% price increase in the past 24 hours, the token’s momentum remains positive, supported by a market capitalization of $1.002 billion and trading volume of $98.96 million.

Analyst Scient points to a potential scalp long opportunity, with the asset recently testing key support and resistance levels. If the price holds above these critical points, the asset may aim to retest higher resistance levels. This setup suggests strong upside potential in the short term, provided the asset maintains price stability.

Support Level Holds Strong

Recent chart analysis reveals a positive outlook for the asset, with a resilient range low providing crucial support. The support level, which has shown strength in previous tests, is expected to continue holding, offering a solid base for price action. This provides traders with an opportunity for potential entry into the market, particularly as the support level remains intact.

FLOKIUSD Chart | Source:x

The key factor in this setup is the established range low, which has held up well amid previous price fluctuations. As the price has shown steady movement within the current range, analysts believe that the market could be setting up for a move higher. Traders are advised to monitor this level closely, as it offers an attractive risk-to-reward opportunity, especially with the potential to adjust stop losses to the August lows.

Bullish Pattern Forms on the Chart

The recent price action reveals a rounded bottom pattern, a formation that has historically led to strong rallies in similar setups. This technical structure is often a sign that the asset is preparing for a breakout, with the rounded bottom suggesting an easing of downward pressure and a potential shift towards upward momentum.

The rounded bottom pattern forms after a prolonged consolidation phase, where price action gradually increases, signaling a shift in market sentiment. Based on past occurrences, such formations have typically preceded significant upward movements. If it maintains its support level, it could position itself for a rally above previous highs, with the market showing increased signs of strength in the short term.

Volume Surge and Market Participation

In addition to the chart’s technical setup, the token has experienced a steady increase in trading volume, reaching approximately $98.96 million. This volume indicates strong market participation and investor confidence, suggesting that the market is actively engaged with the token. Increased volume is often a precursor to price movement, as it signifies a higher level of buying and selling activity, reinforcing the possibility of continued growth for the token.

The market capitalization stands at around $1.002 billion, underscoring its solid position in the market. With substantial volume supporting the current price trend, it appears to be in a healthy state, maintaining momentum as it moves forward. The asset’s price action is holding above key support levels, providing a stable foundation for potential future gains.

FLOKIUSD 24-Hr Chart | Source: BraveNewCoin

Short-Term Trade Setup

In a recent tweet, analyst Scient shared a short-term trade setup, noting a scalp long position after the token swept 12-hour liquidity. Scient identified a 3D support/resistance (S/R) zone that the asset had recently entered, marking a crucial point for price action. According to Scient, if it can maintain its position above the S/R box, there is a strong possibility for a move back toward a significant resistance level, the red line, identified in the chart.

FLOKIUSD Chart | Source:x

The trade strategy focuses on the stability above the support zone, with the expectation that this could trigger a price increase towards higher resistance levels. The key point in this setup is the assumption that the token will stay within the established support zone, allowing it to reclaim previous highs and push further upward.

Given the bullish momentum from the rounded bottom pattern, this short-term setup provides a tactical entry point for traders seeking to capitalize on potential price movement.