FLOKI Forms Bearish Pattern, Breakout May Lead To Lower Levels

FLOKI’s price movement is in the shape of a symmetrical triangle, suggesting an imminent breakout.

The meme coin has been consolidating within this structure for some days and has remained trading around the key $0.000062 level.

Although this looks like a positive development, there is a fairly high probability of a severe price movement soon.

Technical indicators hint that it will most likely be a downward breakout. The latest data from CoinMarketCap reveals that FLOKI last traded at $0.00006239 as of press time.

This represents a 2.02% increase in the last 24 hours. With the market cap at $600.63 million, about 2% up over a substantial 45.83% gain the previous day.

However, while these gains have been short-term, FLOKI’s chart patterns show an increasing downside risk if support levels do not hold.

The symmetrical triangle is in a consolidation phase using the current market structure. This means that buying and selling pressures vary at the same rate.

Nevertheless, the pattern close to its apex indicates increased chances of volatility, which could cause it to break out.

Although the direction of this breakout is uncertain, with FLOKI’s price action, this breakout risks a breakdown.

A Breakdown Could Push the Floki Prices Toward the $0.00004

As FLOKI approaches the decision point, the situation is close to a decisive moment within the symmetrical triangle.

A strong directional move is usually seen after a breakout, and a breakdown from this pattern may drag prices to the projected target of $0.00004.

Analyst Ali Martinez’s bearish outlook for this move also aligns with his description of the flag pattern as having failed.

According to him, if the key support levels fail, this move could result in a significant decline.

His chart shows that FLOKI’s price was rejected multiple times upon hitting descending trendline resistance levels.

Almost every attempt to break out above this level experienced aggressive selling pressures, deepening the bearish mood.

However, the volatile phase has been consolidated, keeping it relatively low. Resistant is $0.000063$, the upper boundary of the triangle.

However, if FLOKI can break and sustain above this level, the bearish outlook will be invalidated,

FLOKI’s Signaling Weak Buying Pressure

The four-hour chart further confirms this weakness. Floki has been consolidating in a rectangular range and has made several unsuccessful attempts to break above the $0.000065 resistance zone.

Currently, the Money Flow Index (MFI) is under moderate buying pressure, with a value of 68.23.

However, the MFI is not yet in overbought territory, so buyers are having a hard time pushing higher prices.

According to the current reading, FLOKI is still in a neutral to bearish zone and sell pressure is expected to rise if the price falls below chart support levels.

The short-term outlook of FLOKI is still uncertain, but according to technical indicators, a bearish breakout is more likely.

The formation of the symmetrical triangle, declining volume, and weak buying pressure make the prospects of a lower move more likely.

However, if FLOKI cannot maintain its immediate support levels, traders may experience a quick drop towards the next major support line at $0.00004.