FLOKI’s bullish Reversal: A Potential Breakout on teh Horizon
FLOKI has crossed a significant milestone by flipping its 200-day moving average into support. This shift signals a major trend reversal, setting the stage for a possible surge in price.
After a period of upward movement,FLOKI is experiencing a correction. However, this pullback seems bullish rather than bearish. The meme coin has broken free from its long-term suppression under the 200-day moving average. The current correction appears to be a setup for further gains.
Traders should keep an eye on the next major support zone. This area aligns wiht several key technical indicators, creating a strong level to watch for a higher low to form.
- 200-Day MA Support: FLOKI has broken and closed above its 200-day moving average, confirming a shift in long-term market structure.
- Support Confluence Zone: The correction is targeting a region where the upsloping channel support, 0.618 Fibonacci retracement, swing low, and value area low all align.
- Potential for Aggressive Bounce: If support holds, price could revisit the channel high in an impulsive move.
FLOKI’s breakout above the 200-day moving average was a significant event for bulls. The price action during the breakout was strong, suggesting genuine market interest. The current correction seems to be a standard corrective structure, forming a higher low before continuing its upward trend.
The area just below the current price carries significant technical weight. The upsloping channel support lines up closely with the 0.618 Fibonacci retracement of the recent rally, the value area low from the current range, and a key swing low. This creates a high-confluence support zone, which often acts as a launchpad for the next bullish leg.
Being a meme coin, FLOKI is known for fast, aggressive movements. Previous corrections during this trend have been sharp but short-lived, with fast recoveries pushing the price back toward the channel high. The same pattern could repeat here if buyers step in at the confluence level.
What to expect in the coming price action? If FLOKI holds the current support zone,a rally toward the channel high is highly likely,especially if volume increases.However, if this level fails, price may revisit internal weekly support further below. For now, the trend remains bullish, and traders should watch for confirmation of a higher low before entering.
