Floki [FLOKI] Shows Bullish Sentiment, Rallies 2.42% Attempting to Defy Previous Month's 12.27% Drop

Floki [FLOKI] has shown a level of bullish sentiment in the market lately, with a rally of 2.42% gradually attempting to defy its previoius month's drop of 12.27%.

The price of Floki has shown some signs of bullish sentiment lately, with a rally of 2.42% attempting to gradually recover its previous month’s drop of 12.27%.

In fact, several bullish indicators have surfaced on the chart, revealing that the current leg up could extend further as market participants continue to buy FLOKI.

This analysis will examine three bullish patterns, technical indicators, and exchange netflows that could influence the next move for FLOKI.

Incomplete Bullish Pattern Could Be A Rally Launchpad

The press time formation of the cup and handle pattern on the chart seemed to be indicating an incoming rally. Such a pattern typically occurs after a period of consolidation, forming a rounded cup-like structure in the chart.

A handle forms when the price pulls back from the high point of the cup and trades sideways, creating a handle on the chart. It is usually formed by a minor retracement of the previous uptrend.

According to this analysis, this rally could be a potential launchpad for major price gains of 24.82% to $0.00006711 from its press time price level.

However, the rally would fully ignite once it breaches the black resistance line on the chart. Once it breaches the level, it could hit the target.

This view was supported by technical indicators, two of which were examined further. These were the Moving Average (MA) Ribbon and Parabolic SAR.

The MA Ribbon includes multiple Simple Moving Averages (SMA) – 20, 50, 100, and 200. At the time of writing, it was reflecting a degree of bullish sentiment.

This outlook was further confirmed by a golden cross pattern. The short-term SMA 20 also crossed above the long-term SMA 200. Such a crossover means that short-term traders have been overpowering the long-term bearish trend.

The Parabolic SAR also added to this bullish wave for FLOKI. This indicator is used to identify the direction of the trend and set up trades accordingly. It sets up a series of dots that follow price trends.

This is the case when these dotted markers appear above the price. It means sellers are gaining strength in the market. On the contrary, when below the price, it indicates that buyers are in control.

A glance at the chart highlighted that a series of dotted markers formed below the press time price action. This can be interpreted to hint at market confidence, with a further move to the upside possible too.

Strong Buying Sentiment Across The Market

Spot market traders over the past week have been accumulating the asset gradually, contributing to the press time price formation on the chart.

According to exchange netflows, which track the movement of an asset in and out of exchanges, traders in the spot market have purchased $502,000 worth of FLOKI. If this buying pattern continues, these trades might be setting the stage for a gradual supply squeeze.

According to this analysis, if the sellers step in to sell, buyers are quickly mopping up the selling pressure. This view was supported by the Taker Buy Sell ratio, which measures the imbalance between buy and sell orders.

Over the past seven days, the Taker Buy Sell ratio saw a reading of 1.024. Any reading above 1 means that there is more buying activity in the market, and that the asset tends to follow this path.

Overall, if market indicators and sentiment continue to stay within bullish territory, a possible price push to the upside is likely.