FLOKI surged after breaking through the descending resistance line, but indicators suggest this uptrend still faces risks as selling pressure has not completely disappeared.
The 24-hour surge occurred against the backdrop of a volatile year for FLOKI , following a sharp decline. This development raises the question of whether the return of capital is sustainable enough to sustain the price increase, or merely a short-term rebound within a larger trend.
- FLOKI surged 18% in 24 hours despite having previously fallen nearly 72% year-to-date.
- The price broke through the downward resistance, with volume reaching $147.7 million, opening up the possibility of testing the $0.00008930 level.
- The SAR and MFI indicators support an uptrend, but the negative A/D ratio suggests selling pressure and the risk of the upward momentum being halted.
FLOKI breaks its losing chain after months of pressure.
FLOKI has broken out of a downward sloping resistance line, ending a prolonged period of price consolidation and setting the stage for a retest of previous highs if momentum is maintained.
The recent rally occurred after the price broke out of the descending resistance line that had kept FLOKI in a downtrend for a quarter, from October to December 2025, when selling pressure increased.
The momentum on the third breakout attempt was described as strong enough to push the price up, along with a surge in volume to $147.7 million. Volume is a crucial variable as it reflects the market's level of "consensus" with the breakout.
If this momentum continues, FLOKI could retest the $0.00008930 region, the highest level last seen on October 11th. On the way up, the marked areas (according to technical analysis) could be where price faces profit-taking pressure, especially as they coincide with the peaks of previous descending resistance lines.
A price increase is possible when SAR and MFI agree.
The parabolic SAR is supporting an uptrend as the SAR dots are below the price, while the MFI remains above 50, indicating positive capital inflow, thereby increasing the probability of the price continuing towards the target zone.
The Parabolic Stop and Reverse (SAR) indicator suggests that conditions for an uptrend remain favorable. The key signal comes from the formation of SAR dots below the price line.
In technical analysis, when SAR dots are below price action, the probability of a continuation in an upward direction is generally higher. Conversely, when the dots are above the price, they usually reinforce a bearish outlook.
Simultaneously, the Money Flow Index (MFI) continues to rise and remains above the 50 threshold, which is XEM "bullish." This implies that Capital inflows into FLOKI are stronger, supporting the scenario that the price could move towards the target zone mentioned, provided the capital flow remains stable.
Caution is advised as the A/D ratio remains in negative territory despite short-term buying pressure.
Although the rising A/D ratio suggests that buyers are winning in the short term, the fact that this indicator remains below 0 signals that broader sentiment has not completely reversed, so the risk of sellers returning remains significant.
Besides positive signals, the Accumulation/Distribution (A/D) indicator offers a "mixed" perspective. A/D measures the balance of buying and selling by tracking whether the market is leaning towards accumulation (buying) or distribution (selling).
At the time mentioned, the A/D ratio was trending upwards, indicating that buying pressure had outpaced selling pressure in the last 24 hours. However, the A/D ratio remained in negative territory, suggesting that the broader sentiment was still bearish and that the distribution phase within the larger trend may not yet be complete.
As a result, while short-term conditions may appear constructive, sellers are still active and could regain control. If that happens, FLOKI could be blocked below resistance zones and remain at levels lower than buyers expect.
Conclude
FLOKI 's breakout is a notable change after months of downward pressure. However, for a sustainable uptrend, the market needs to maintain momentum and capital inflow, while also improving the distribution picture as shown by the A/D ratio.
- FLOKI 's breakout indicates a significant shift after a prolonged period of decline.
- SAR and MFI support the possibility of further gains, but distribution signs and a negative A/D ratio suggest buyers may encounter strong resistance.
Frequently Asked Questions
Why did FLOKI rise despite a sharp decline earlier in the year?
FLOKI rose after the price broke out of the descending resistance line and volume increased, suggesting renewed interest in the short term. However, the previous large drop suggests the longer-term trend may not have fully reversed yet.
What price range is being mentioned as a potential target?
If momentum is maintained, FLOKI could head towards the $0.00008930 region, the most recent high reached on October 11th. Along the way, intermediate resistance zones could trigger selling pressure.
Which indicator supports the bullish scenario for FLOKI?
A parabolic SAR with dots below the price generally supports a continuing uptrend. An MFI above 50 indicates positive capital inflow, increasing the probability of further price increases if the Capital flow does not weaken.
What is the biggest risk according to the indicators?
Although the A/D ratio is increasing, it remains in negative territory, implying that broader sentiment has not yet fully turned positive. This suggests that sellers could still return, keeping prices below resistance levels and hindering sustainable growth.
