While the overall trend for FLOKI/USD pair is bearish as the sellers were leading this downtrend through a falling wedge pattern. However, on February 7th, a massive bullish candle with 36% intraday gain pierced through the long coming descending trendline, indicating the first sign for a bullish reversal.
Key technical points
- Floki Inu buyers reclaim the 20-day MA
- The intraday trading volume in the Floki Inu token is $12.9 Million, indicating a 151% gain.
Source- Tradingview
In our recent coverage of Floki Inu technical analysis, Coingape summarized the short-term downtrend, which tumbled the coin prices by 87% and plunged to a new lower low at $0.00001624.
During the downfall, the coin price was resonating in a falling wedge pattern, whose descending trend helped bears to sell on rallies. However, today the FLOKI buyers showed a sudden spike in demand, which poked the shared dynamic resistance of the pattern’s trendline and 20-day MA.
The Relative strength index(55) slope shows a sudden pump above the equilibrium, suggesting the bears are losing their grip.
The buyers have flipped the 20-day resistance into possible support. However, the downsloping 50 and 100 indicates a bearish trend.
FLOKI/USD: 4-hour Time Frame Chart
Source- Tradingview
In the last five trading days, the FLOKI price has pierced through three resistance of $0.0000387, $0.000047, and $0.000056, indicating a 75% from February 4th low.
If buyers could sustain the recently breached $0.000056 mark, FLOKI price is likely to rally toward the immediate resistance of $0.000065.
Conversely, a minor pullback is expected to the $0.0000475 support to stabilize the ongoing rally.
- Resistance levels- $0.000065 and $0.000077
- Support levels-$0.000047 mark and $0.000038
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/floki-inu-price-correction-over-trend-reversal/