Data points to 50% increase in memecoin FLOKI, says analyst
Technical analyst Chanakya has made an optimistic prediction for the FLOKI memecoin, stating that it could skyrocket by up to 50% in the coming days, reaching the $0.00021 mark, as long as it manages to close the daily candle above $0.000139.
According to the expert, the cryptocurrency, which has been consolidating in a narrow range for almost a month, is about to break through this barrier and start a significant rally.
Chanakya highlighted that since the end of August 2024, FLOKI has been staying within a consolidation zone between $0.000115 and $0.000132.
However, based on positive on-chain metrics and an upcoming marketing announcement scheduled for September 24, the coin is poised for considerable appreciation.
“I believe that if FLOKI closes above $0.000139, we could see a nearly 50% increase, taking the price to $0.00021,” the analyst said.
FLOKI: Market sentiment and bullish metrics
Technical analysis suggests that FLOKI is still below the 200-day Exponential Moving Average (EMA). This indicates a bearish trend in the short term. However, there are signs that the scenario is about to change.
“The 200-day EMA is an important indicator to determine whether an asset is in an uptrend or a downtrend. In the case of FLOKI, it has not yet broken through this barrier. But the increasing buying pressure could reverse this situation soon,” Chanakya explained.
On-chain metrics also reinforce this bullish outlook. According to data from Coinglass, FLOKI’s long/short ratio stood at 1.34 at the time of analysis, indicating that most traders are betting on the coin’s appreciation.
Additionally, the memecoin’s Futures Open Interest has increased by 7.3% over the past 24 hours, suggesting that more traders are opening long positions. This could further propel the price towards the expected high.
As highlighted, when there is an increase in Open Interest combined with a Long/Short Ratio above 1, this is usually a strong indication that the asset is ready for appreciation. In the case of FLOKI, these signs are clear.
Another important piece of data highlighted in the analysis is that 57.52% of the top traders held long positions in FLOKI. Meanwhile, 42.48% were short. This imbalance in favor of buyers reinforces the view that bulls are dominating the market.
At the time of analysis, FLOKI price was trading around $0.000133, registering a modest increase of 0.90% in the last 24 hours. However, as the analyst points out, the breakout of the $0.000136 resistance could be the trigger for a more significant rally.