FlokiFi Locker has reached a record TVL of $165.6 million, surpassing popular Memecoins like Dogecoin and Shiba Inu. Each lock on the ETH and BSC chains triggers a deflationary burn, contributing to the reduction of the supply of Floki [FLOKI]. With this milestone, FLOKI is poised to use its momentum to break its current price.
Are technical indicators pointing to a strong rally?
FLOKI price is currently consolidating, trading in a tight range at $0.000136. Bollinger Bands indicate low volatility, which usually suggests an impending breakout.
The main question remains: which way will it go? The RSI is currently at 51.45, neither overbought nor oversold.
So, with neutral momentum, traders need to closely monitor price action to determine potential upside or downside. A breakout above the Bollinger Bands could signal a strong rally, but caution is advised.
Number of Holders Rising: Bullish Signal?
By mid-September, the total number of FLOKI Holders had reached 595, indicating that investor confidence is growing and demand for the coin is also increasing.
Furthermore, higher demand combined with reduced supply from deflationary burning could push prices higher in the coming weeks. The rising number of Holders is a bullish indicator that investors should pay attention to.
On-chain Data: What Are the Signals Saying?
On-chain data paints a mixed picture. The “In the Money” indicator shows a 0.82% increase, which is a good sign. However, other indicators are not as encouraging. Net network growth is down 0.33%, and large transactions are down 12.36%, suggesting downward pressure.
Despite some positive signals, caution is needed as these bearish factors could affect short-term price action.
Liquidity Data: Can Bulls Take Over?
Recent liquidity data indicates that long positions dominate over short positions, with $3.82K in long position liquidity recorded on September 22. This shows that bullish traders still dominate the market.
Relatively low liquidity indicates a stable market, leaving room for a potential upward price trend.
Is FLOKI ready for a breakout?
With record TVL, rising Holder count, and bullish on-chain signals, FLOKI looks primed for a breakout.
However, mixed on-chain data and low volatility could lead to market hesitation. FLOKI has upside potential, but traders should wait for confirmation signals before entering.
