FLOKI: Why a 20% rally could be in the works for the memecoin

• 60.15% of top FLOKI traders hold long positions, while 39.85% hold short positions. 
• FLOKI was trading above the 200 Exponential Moving Average at press time, indicating an uptrend

The popular Floki [FLOKI] memecoin is poised for a significant 20% price surge after a recent breakout of the crucial resistance level. This breakout in FLOKI coincided with a shift in overall market sentiment from a downtrend to an uptrend.

FLOKI jumps 9%, will the rally continue?

With this positive sentiment, FLOKI was trading near $0.000144 at press time and has experienced a significant price surge of over 9% in the past 24 hours. 

However, it was also observed that participation from traders and investors has skyrocketed, as its trading volume soared by 78% during the same period. This shows how the crypto community looks at this recent breakout

FLOKI technical analysis and key levels 

According to AMBCrypto’s technical analysis, FLOKI appears bullish and may soon rally. Since the 27th of September, the memecoin has been in a downtrend and formed a descending trendline where it has consistently faced rejection.

Source: TradingView

However, with the recent price surge, FLOKI breached that resistance and closed a four-hour candle above the horizontal level of $0.00001442. There is a strong possibility that the meme coin could soar by 20% to reach the $0.000177 level in the coming days.

As of this writing, FLOKI was trading above the 200 Exponential Moving Average (EMA) in a four-hour time frame, indicating an uptrend. Whereas, in the daily time frame, it is facing resistance from 200 EMA. 

Another technical indicator, the Relative Strength Index (RSI) is signaling a bullish momentum as its value shows that the meme coin is in an oversold area. Traders and investors often analyze the RSI when building long or short positions based on its value.

Bullish on-chain metrics 

It’s not just technical analysis that suggests FLOKI is bullish and poised for an upside rally, several on-chain metrics also support this positive outlook. 

According to on-chain analytics firm Coinglass, FLOKI’s long/short ratio currently stands at 1.509, indicating strong bullish sentiment among traders.

Source: Coinglass

Additionally, its future open interest has jumped by 4.2% over the past 24 hours and has been steadily increasing. This rising open interest shows growing interest from traders amid market reversal.

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

Currently, 60.15% of top traders hold long positions, while 39.85% hold short positions. 

Combining technical analysis part and data by on-chain metrics it appears that bulls are currently dominating the FLOKI meme coin and there is a strong possibility it could soar by 20% in the coming days.