FLOKI’s price drops 6% in 24 hours, but here’s why predictions look bullish

• FLOKI was down by more than 6% in the last 24 hours. 
• Market sentiment around the meme coin remained bullish. 

Floki [FLOKI], a meme coin that gained immense popularity in 2023, is once again on the verge of a breakout.

At first glance, this inference might seem odd, as both the meme coin’s daily and weekly charts were in the red at press time.

However, a bullish pattern had formed on the meme coin’s daily chart at press time, which hinted that the possibility of a northbound breakout was high.

FLOKI is testing a bull pattern

The meme coin’s price registered a sharp uptick on the 21st of January. However, the trend did not last long.

According to CoinMarketCap, in the last 24 hours alone, FLOKI was down by over 6%. At the time of writing, it was trading at $0.00003075 with a market capitalization of over $293 million.

In the meantime, the meme coin’s chart flagged a bullish pattern.

Added more $FLOKI to the bag as well as I expect when the one and only king of memecoins will fly that coins like $FLOKI will follow. https://t.co/quFvYDmQsE pic.twitter.com/ryNfnC7bci

— Pepper (@CryptopepperP) January 21, 2024

Popular crypto influencer Pepper recently posted a tweet highlighting this development. As per the tweet above, if FLOKI goes above the yellow trend line, it could begin yet another bull rally.

In fact, the rally might also result in FLOKI’s price reaching its Q4 2023 highs.

Is an uptrend likely?

FLOKI must register gains in the coming days to start a bull run. To text this theory, AMBCrypto checked the meme coin’s metrics.

We found that its Social Volume spiked substantially in the last few days, reflecting its popularity. Its Weighted Sentiment turned positive as well.

This meant that investors were confident in FLOKI at press time, and were expecting a price rise soon.

Source: Santiment

Expounding upon the above bullish sentiments, FLOKI’s NVT ratio plummeted in the last week. A drop in the metric indicates that an asset might be undervalued, hinting at a possible uptrend.

Regardless, the meme coin’s MVRV ratio sank in the last week — a bearish sign.

Source: Santiment

The meme coin’s Relative Strength Index (RSI) also registered a downtick and was headed further under the neutral mark at press time, indicating an upcoming price decline.

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

However, its Chaikin Money FLow (CMF) showed optimistic signs, as it rose slightly.

Considering all the aforementioned metrics and market indicators, it will be interesting to see whether FLOKI manages to reach its Q4 2023 highs once again.

Source: TradingView