Over the past week, memecoins have seen a trend reversal after months of struggles. Amid this rally, Floki [FLOKI] has shown potential for a reversal.

FLOKI is currently trading at $0.0001481, up 5.4% over the past 24 hours. Additionally, the memecoin is also up 11.28% over the past week.

FLOKI was previously on a downward trend, down 8.07% on the monthly chart. However, since hitting a local bottom at $0.000111, recent gains have outweighed losses.

Despite this, FLOKI is still 57.41% away from its all-time high of $0.0003462, which was recorded four months ago.

Therefore, current market conditions beg the question of whether FLOKI is on the cusp of a sustained recovery or simply a correction driven by market speculation.

According to analysis, Floki saw a strong surge, pushing the memecoin above a long-standing bearish resistance.

What Does FLOKI's Chart Reveal?

According to TinTucBitcoin analysis, Floki is experiencing a strong uptrend at the time of writing.

This is indicated by the Aroon line with the Aroon Up at 100% above the Aroon Down at 28.5%. As such, this memecoin is enjoying a very strong uptrend with a recent new high.

This level shows that FLOKI is witnessing very strong bullish momentum, suggesting that buyers are dominating the market.

The Directional Movement Index also supports this observation. At the time of writing, the positive reading at 24.54 is above the negative reading at 14.5, suggesting a sustained uptrend.

Looking further, FLOKI’s total liquidity has been decreasing over the past three weeks. At the time of writing, liquidity in long positions has dropped from $356.8k to $11.9k. This shows investor confidence in the memecoin’s prospects, expecting the price to rise.

This market sentiment is also supported by a positive OI-Weighted funding ratio. Therefore, the majority of investors are holding long positions and are willing to pay a premium to hold their positions.

Finally, exchange inflows have declined over the past week, from a high of 4.63 billion tokens to 7.06 million at the time of writing.

This shows a holding behavior, with investors storing their assets in personal wallets and cold wallets. Such market behavior suggests that investors are expecting further price increases.

Simply put, FLOKI is experiencing a strong positive market sentiment at the time of writing. If the current market conditions are maintained, the memecoin will surpass the next important resistance level at $0.000161 in the short term.

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