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Can FLOKI mirror BNB’s success? What these key levels suggest

2min Read

FLOKI mirrors BNB’s structure, indicating an upward move after grabbing sell-side liquidity, but trading volume stagnates.

Can FLOKI mirror BNB's success? What these key levels suggest
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  • FLOKI mirrored BNB’s structure and pierced through the 200MA, but the RSI is oversold. 
  • FLOKI takes sell-side liquidity on the 4-hour chart but trading volume stagnating.

FLOKI, one of the leading memecoins, has attracted significant attention from crypto investors due to its success on Ethereum [ETH] and Binance Coin [BNB] chains.

After substantial gains in its previous bull run, FLOKI formed a double top and entered a consolidation phase, the same way BNB did before surging. 

At press time, on the daily timeframe, FLOKI was displaying a similar structure to BNB, leading to high expectations that it could replicate BNB’s previous success. 

Source: TradingView

Investors are closely watching for a potential upward move in FLOKI’s price action ahead of an anticipated bull run in Q4 of 2024.

The price action of FLOKI/USDT also dipped below the 200-day exponential moving average, raising concerns of rebound. 

However, the RSI is in the oversold region, affirming the potential for a rally. This situation presented a strong buying opportunity for investors before a possible price rally. 

The chart and market cap suggested a parabolic move, with analysts confident that FLOKI could soon reach a $10 billion market cap. 

Using a simple date and price range analysis, a new all-time high is anticipated by January 2025, with another peak expected by mid-2025.

Source: TradingView

Sell-side liquidity grab as volume stagnates

On the 4-hour chart, FLOKI is following a descending trendline after tapping into sell-side liquidity from two consecutive equal lows. 

The plan is for FLOKI to break above this trendline and then buy on the retest. This strategy aligns with earlier analyses, both suggesting that FLOKI is poised for an upward move soon.

Source: TradingView

FLOKI’s trading volume has been steady at levels seen before its June surge to a new all-time high.

This stagnation suggests a potential buying opportunity for investors, as the current volume could indicate a repeat of history, with FLOKI poised to reach new highs again.

Source: Coinglass


Realistic or not, here’s FLOKI’s market cap in BTC’s terms


Finally, a combined analysis of social volume, holder count, active addresses, network growth, and the profit-to-loss ratio of daily on-chain transactions shows rising activity for FLOKI memecoin. 

This upward trend in the combined metrics suggests increasing interest and engagement, indicating potential growth for FLOKI.

Source: Santiment

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Lennox Gitonga is a Financial Market and On-Chain Analyst at AMBCrypto, bringing the rigor of traditional financial analysis to the digital asset space. With a Bachelor of Commerce in Finance, he possesses a strong academic foundation in market principles and investment analysis. His expertise is sharpened by hands-on experience as a professional equities trader and financial analyst, where he honed his skills in analyzing complex market structures. Since transitioning his focus to cryptocurrency in 2019, Lennox has applied this disciplined approach to the blockchain sector. He specializes in providing in-depth analysis on both a technical and on-chain level, interpreting everything from price action and chart patterns to network health and transactional data. At AMBCrypto, Lennox is dedicated to translating this multifaceted data into clear, actionable insights. His work empowers readers by making sophisticated market analysis accessible, helping them understand the key drivers behind cryptocurrency valuations and trends.
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