FLOKI Scores 30% Price Gain Following Following Memecoin Launch and Premier League Sponsorship Deal
How Long Will FLOKI Increase Continue? | Credit: Hameem Sarwar
Key Takeaways
- Floki (FLOKI) announced a partnership and a memecoin launch this week.
- The price of FLOKI has increased 30% since its Aug. 5 lows.
- Is this the beginning of a bullish bullish FLOKI trend reversal?
FLOKI has been one of the standout performers in the cryptocurrency market this year, having risen by as much as 1,000% at one point and reaching a new all-time high in June.
The memecoin’s recent 30% price gain has sent shockwaves through the market.
The catalyst behind this latest bounce? A high-profile Premier League sponsorship deal and new memecoin launch have injected fresh momentum into the project, leaving investors wondering if FLOKI’s remarkable comeback is here to stay.
FLOKI’s Eventful Week
The recent surge in FLOKI’s price can be attributed to various factors.
The upcoming launch of Simon’s Cat (CAT) on TokenFi, Floki’s DeFi platform, has generated significant hype, with TokenFi introducing a tier calculator and points-tracking system to streamline the pre-sale process.
Binance’s confirmation of support for the CAT airdrop to FLOKI holders has also contributed to the excitement.
Additionally, a proposal to invest $200,000 from the Floki treasury in the CAT private sale, which has been approved by 97.52% of participants, has further boosted sentiment. The proposal aims to diversify the treasury’s holdings and capitalize on the potential for outsized returns.
Furthermore, the announcement of Valhalla, Floki’s metaverse game, as the new back-of-shirt partner for Premier League team Sunderland FC , added to the positive momentum.
These developments have collectively driven FLOKI’s price up by over 30% since its Aug. 5 lows, with a significant portion of the gains occurring after the Aug. 20 announcements.
FLOKI Price Bounces and Reclaims Support
The daily chart shows that FLOKI has fallen under a descending resistance trend line since the all-time high of $0.003490 in June 2024. The decline continued until Aug. 5.
At the time, it seemed that FLOKI broke down from the $0.000115 horizontal support area.
However, FLOKI reversed this trend by creating a long lower wick (white icon) and moving above the area.
Today, on Aug. 20, the FLOKI price attempts to break out from the resistance trend line which has existed for 76 days.
While the daily RSI does not confirm the potential for a breakout, the MACD does since it has generated a bullish divergence (green) for over two months.
As a result, the daily time frame forecasts an eventual breakout from the pattern. The closest resistance trend line is at $0.0004200.
Long-Term Wave Count Still Bearish
Despite the positive short-term outlook, the long-term wave count implies the bounce will be a relief rally followed by another eventual decline.
This is because FLOKI has completed a five-wave increase starting in Sept. 2023. After its June 2024 high, FLOKI created an A-B-C corrective structure.
However, this decline is minuscule compared to the upward movement. So, it is likely only the A wave in a longer, A-B-C structure.
So, the wave count suggests the increase will take the price of FLOKI toward the 0.618 Fibonacci retracement resistance at $0.00024. This will complete the longer-term B wave and will be followed by another drop.
If the entire correction has 0.61 times the length of the upward movement, which is expected, FLOKI will bottom sometime in Nov. 2024.
