Floki Crypto Eyes Breakout as Descending Channel Forms

Floki Crypto is consolidating within a defined descending channel, suggesting an upcoming directional move.

As selling pressure eases and momentum compresses near key support, analysts identify potential reversal signs that could trigger a short-term bullish shift.

Market Identifies Descending Channel Structure

In a recent X post, analyst Jonathan Carter highlighted a clean descending channel formation on Floki’s daily chart, with precise touches on both resistance and support lines. Carter described the structure as a classic compression setup that often precedes strong reversals, noting that the market may be underestimating the crypto’s current positioning.

Source: X

He stated, “Channel compression + support defense = reversal momentum building,” implying that the ongoing price contraction is creating an environment favorable for a breakout once buying volume accelerates. According to his analysis, potential upside target levels are $0.000078, $0.000097, $0.000110, $0.000124, $0.000155, and $0.000200 — each marking a technical resistance zone that could be tested sequentially if bullish momentum confirms.

The pattern, Carter emphasized, often catches retail buyers off guard, as extended consolidation phases tend to disguise accumulation zones. A daily close above the upper boundary of the channel would signal early confirmation of trend reversal. Conversely, sustained rejection near the channel midpoint could delay the recovery phase and extend the consolidation period through early November.

Market Data Highlights Market Weakness but Liquidity Stability

According to BraveNewCoin, Floki currently trades at $0.00006757, reflecting a 3.90% decline over the past 24 hours. The meme token holds a market capitalization of $652.58 million, ranking 139th globally, with a 24-hour trading volume of $50.06 million. Despite the short-term correction, liquidity remains consistent across exchanges, suggesting that selling pressure has not triggered a structural breakdown.

Source: BraveNewCoin

The available supply stands at 9.65 trillion tokens, maintaining equilibrium within its circulating ecosystem. Price data shows that the crypto continues to oscillate between $0.000064 and $0.000070, establishing a compressed trading band that aligns with Carter’s descending channel thesis.

Technicals Confirm Reversal Potential

At the time of writing, FLOKI/USDT trades around $0.000067, consolidating after losing the purple Ichimoku cloud resistance highlighted in a new update by Cheek Analytics. The analyst noted that the coin retraced to what he calls the “fundamental price”, represented by the green line, after failing to sustain above the cloud structure in previous sessions.

Source: X

Cheek explained that when price flips resistance into support or vice versa, it often accelerates toward the next Ichimoku cloud level. In the asset’s current case, the loss of the purple cloud resistance has led to a controlled pullback toward the lower equilibrium zone. He categorized sentiment as being in the first level of fear, denoted by a light blue background, while the second level of fear, represented by a darker blue zone, marks a region historically associated with optimal entry conditions.