FLOKI has bounced off a essential assist stage and is now buying and selling inside a clearly outlined vary. With liquidity nonetheless resting beneath and a possible Three Drives sample forming, a bullish reversal could also be on the horizon.
FLOKI (FLOKI) skilled a pointy bearish impulse final week, driving worth into a significant assist zone. After tapping the 0.618 Fibonacci retracement stage completely, worth rebounded however now faces resistance inside an outlined excessive timeframe vary.
The coin is now buying and selling between two essential assist and resistance ranges, and the subsequent break will possible outline the directional momentum transferring ahead. Nevertheless, the liquidity image and broader market construction counsel that another transfer decrease may nonetheless be on the desk earlier than a confirmed breakout happens.
Key technical factors
- Bounce from 0.618 Fibonacci: A textbook response off this key retracement stage initiated the present rebound.
- Buying and selling Between HTF Ranges: Value is consolidating between excessive timeframe resistance and assist, awaiting a breakout.
- Three Drives Sample Growing: Value might full a 3rd liquidity sweep earlier than confirming a bullish reversal.
After final week’s sell-off, FLOKI discovered assist on the 0.618 Fibonacci retracement, traditionally a robust technical stage. Whereas the bounce was clear, the value has failed to interrupt via excessive timeframe resistance and has since settled into a spread.
Crucially, a notable liquidity low from earlier construction stays intact. These lows typically act as magnets from an order move perspective, attracting worth as market makers look to set off cease orders earlier than initiating a bigger transfer. A sweep of this liquidity low may full the third leg of a growing Three Drives sample, a basic sign of bullish reversal when confirmed by quantity.
If this third drive happens, it is going to possible retest, or barely undercut, the 0.618 Fibonacci stage once more. Finishing this sample would current a compelling reversal setup, notably if accompanied by a quantity uptick. From there, the trail towards VWAP resistance and the earlier worth space excessive turns into extra favorable, rising breakout potential.
What to anticipate within the coming worth motion
If FLOKI sweeps the present low and varieties a clear third drive, it may mark the top of the retracement section and set the stage for a bullish breakout.
Merchants ought to look ahead to a reclaim of the HTFR and VWAP resistance as key indicators of affirmation. Till then, the value stays range-bound, with draw back liquidity threat nonetheless in play.