FLOKI’s Potential Rebound: Bullish Patterns and Whale Influence

• FLOKI’s price fell but bullish chart patterns suggest a potential rebound.
• Rising open interest indicates growing trader confidence in FLOKI’s recovery.
• Whale activity could significantly influence FLOKI’s future price movement.

FLOKI’s price fell over 11% from $0.00016 to below $0.00014 on Thursday. However, this drop might not be a reason to panic. Recent chart patterns suggest that FLOKI could be gearing for a strong rebound. The coin recently managed to break out of a downtrend that had held since July.

$FLOKI

Perfect double bottom on the HTF uptrend📈
I added more bag here 📈

Are you with me?? #FLOKI #crypto #trading @CryptoNewton pic.twitter.com/nw2aUbNft7

— 🧙 Crypto_Jobs🧙‍♂️ TA & FA 🎯 (@CryptoJobs3) September 1, 2024

Positive Signs for FLOKI

In August, FLOKI formed a double-bottom pattern, which is often seen as a classic signal of a bullish reversal. This pattern indicates that the coin might be ready to change its course and head higher.

Despite the setback on Thursday, where FLOKI slipped below its 50-day moving average (50DMA), this level remains a crucial marker. If FLOKI can regain and hold this level, it might head back to its July highs, marking a strong recovery.

Another positive sign is the increase in FLOKI’s open interest. Open interest surged by 18% on Thursday, signaling a growing interest from traders. If FLOKI’s price reaches $0.000165, about $1.08 million in short positions could be liquidated. This could further accelerate the coin’s upward momentum, possibly pushing it even higher.

Whale Activity and Future Price Movement

FLOKI’s price could also be heavily influenced by its holder distribution. Currently, whales—large holders of the coin—control a significant 73.47% of the total supply.

Meanwhile, investors hold 13.14%, and retail traders account for 13.40%. This concentration in whale holdings means that any major move by these large holders could have a substantial impact on FLOKI’s price.

A sudden buy or sell by whales could either propel the coin to new highs or trigger another downturn. As FLOKI aims to regain key levels, bullish patterns and rising interest hint at a potential price surge.

Source