- FLOKI’s price surge has been supported by rising Open interest – A sign of strong market confidence
- Hike in network activity and retail interest hinted at sustained bullish momentum for the memecoin
FLOKI, with a press time price of $0.00009928, hiked by 5.18% on the charts. In doing so, the popular memecoin also climbed past a crucial resistance level.
This move hinted at the potential for a strong bullish rally in the near future. With growing market interest, the token’s momentum is likely to continue building. In fact, traders are now keen to see whether FLOKI can maintain this momentum and lead the charge in the altcoin market or not.
Assessing impact of hike in Open interest
According to Coinglass, Open Interest surged by over 30%, climbing to $26.39 million. Such a major uptick pointed to growing trader confidence and positions for potential gains.
Worth noting, however, that Open Interest typically rises when traders are highly involved – A sign that more investors are betting on a future price hike. To put it simply, this surge hinted at a strong belief that FLOKI could continue to rise on the charts.
FLOKI technical analysis – Key levels to watch
The memecoin saw major upside on the charts after successfully re-testing a key support level. At the time of writing, the altcoin’s price was trending higher, with the RSI’s reading of 41.40 hinting that the token may be gradually exiting the oversold zone.
Key levels to monitor include $0.00009811, which has been a support point, and $0.00013502. The latter is a resistance level that, if broken, could open the door for significant price appreciation.
Additionally, if the price manages to breach the resistance at $0.00018743, the memecoin could head towards even higher targets. These levels will be critical in determining the next phase of its price action.
Source: TradingView
Addresses stats analysis – Increasing user engagement
Memecoin’s network activity has seen a significant hike lately, with new addresses rising by 25.17% and active addresses growing by 45.02%. This uptick is a sign that the community is becoming more engaged with the token. Especially as both new and returning users interact with the network.
Additionally, this surge in activity seemed to be in line with the token’s price movement, confirming that growing interest in FLOKI may not just be speculative. Instead, it might be driven by solid user adoption.
Source: IntoTheBlock
Transaction count stats – Retail traders driving growth
The memecoin registered a surge in smaller transactions, with the $0.00 – $1.00 category increasing by 275%. This is a clear sign that retail traders have been entering the market and accumulating FLOKI.
Furthermore, the $1.00 – $10.00 category also saw a 103.33% uptick, indicating that more investors are getting involved with higher amounts. What these findings imply is that FLOKI has been attracting attention from a broad user base, particularly retail traders looking to capitalize on the token’s potential.
Source: IntoTheBlock
Liquidation heatmap – Are traders holding on for gains?
Finally, the liquidation heatmap highlighted significant accumulation of leveraged positions around the $0.000096 – $0.000098 price range. This alluded to strong support, with many traders placing their bets in this zone.
However, the increasing liquidity in this zone also means that the price could face resistance in the short term. If FLOKI manages to hold this support zone, it will likely trigger further bullish price action.
Source: Coinglass
Can memecoin sustain its bullish momentum?
FLOKI’s recent breakout, supported by rising Open Interest, network activity, and hike in retail interest, hinted at significant bullish potential on the charts.
Therefore, it is likely that FLOKI will maintain its momentum and continue rising. If the key resistance levels are breached, the memecoin could sustain a rally, making it an exciting prospect for investors.
