FLOKI Price Rebounds After Decline — Is Bullish Momentum Building?
FLOKI takes a nosedive of 25% but finds itself at ascending support. A bounce looks likely but for how long?
Key Takeaways
- FLOKI reached an all-time high on June 5.
- The ascending channel hints at either correction or bull phase.
- Potential new bull cycle if price surpasses $0.00020.
This analysis explores FLOKI‘s recent price action, highlighting its all-time high in June, subsequent corrections, and the formation of an ascending channel.
The discussion delves into potential scenarios, such as whether FLOKI is forming a bullish structure or is still in a corrective phase.
FLOKI Price Analysis
On June 5, FLOKI reached an all-time high of nearly $0.00035, marking a 177% increase from its previous low of $0.00012 on April 19.
A downturn followed, revering the price to its horizontal support on July 5 at $0.00012.
The meme coin recovered 68% to $0.00021 on July 2. Additionally, as it surpassed its previous high, there was a strong chance FLOKI started a new bullish phase.
However, the following descending move brought the price to a lower low of $0.000096 on Aug. 5, proving that its long-lasting correction was yet to develop fully.
Read more: Floki Price Prediction 2024: FLOKI Price Analysis
Since the August low, we have seen an ascending channel form, bringing two possible counts.
The WXY correction from March ended in August, or the ascending channel’s second wave X is before its final Z wave.
In other words, the ascending channel could be the first bullish structure in a new bull phase or a corrective structure, leading to a final downside move. So which is more likely?
FLOKI Price Prediction
A closer look at the 4-hour chart and examining the wave structure shows that FLOKI has some upside potential.
On Sept. 27, the price peaked at $0.00017 but fell sharply by 25%. Since the previous structure did not offer a clear five-wave impulse, we assume that the ascending channel is primarily corrective in nature.
From Aug. 5, we saw an ABC to the upside followed by a second ABC to the downside to its recent higher low of $0.00013. The RSI became oversold, and ascending support was met, so a bounce looks likely at this stage.
However, if the ascending channel is part of the higher-degree correction, being its second wave X, another ABC to the upside should form next. Its price target is $0.00020, after which its final Z wave to the downside should bring FLOKI below the horizontal support and Aug. 5 low.
Should the upward momentum continue past $0.00020 there would be a chance FLOKI entered a new bull cycle.
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