Amid the market's ongoing recovery, Floki Inu (FLOKI) forms a bullish price action pattern

According to AMBCrypto's analysis, FLOKI appeared bullish as it formed a bullish divergence on the daily charts and begun moving in an upward direction.

Floki Inu (FLOKI) formed a bullish divergence on the daily charts, which might pave the way for a 20% rally. However, despite the recent recovery, the memecoin remained below the 200 Exponential Moving Average (EMA) on the daily timeframe.

This suggested that the asset may be in a strong bearish trend, especially on the back of its weak price action.

According to AMBCrypto's analysis, the Relative Strength Index (RSI) formed a higher low at 36.66 and began moving in an upward direction. This seemed to suggest that the asset has been losing bearish momentum and may witness a price reversal.

At press time, FLOKI was trading at $0.000059, after rising by just 2.50% in the last 24 hours. Additionally, trader and investor participation seemed to have skyrocketed, resulting in a 10% jump in trading volume.

FLOKI technical analysis and price prediction

After hitting a low of $0.000047 on 10 December, FLOKI bounced back quickly and managed to retest the $0.000054-level multiple times, which served as strong support.

If the memecoin holds above the $0.000056-level, there is a strong possibility that it could soar by 20% to hit the $0.0000723-level in the future.

However, if this momentum continues and the memecoin breaches and closes a daily candle above the $0.000073-level, it could soar by another 20% to touch the $0.0000885-level in the future.

Moreover, if the coin price drops below the support level of $0.00005 and breaks the $0.000043-level, it might indicate a continuation of the downtrend.

Finally, it is crucial to note that crypto prices are highly volatile and this analysis should not be considered a personal investment advice.

FLOQI price chart in the banner credit: Benzinga