- FLOKI shows bullish divergence on RSI and price compression within a year-long wedge, signaling potential for a strong breakout rally.
- Elliott Wave structure suggests the corrective phase may be ending, with a bounce from key Fibonacci levels reinforcing reversal potential.
- Stochastic RSI crossover and proximity to trendline support align with historical setups that triggered major rallies in FLOKI’s price action.
FLOKI’s 3-day chart on Binance is showing strong bullish signals after months of correction. The price recently bounced from a critical support zone within a descending wedge, which has persisted for over a year. This structure formed after a major rally that peaked in February 2024. The wedge’s lower boundary, around 0.000003400 USDT, has acted as consistent support. Notably, the price action mirrors mid-2022 behavior, when FLOKI saw a 200% rally after similar technical conditions.
Besides the wedge pattern, the Relative Strength Index (RSI) shows bullish divergence. The RSI prints higher lows while price hits lower lows. The 2022 setting that sparked off an upward rise is very similar to this divergence. The asset is still in oversold territory since the RSI is still below 30. Candlesticks are also getting smaller, which is a sign of price compression that frequently comes before strong breakouts.
Elliott Wave Structure Confirms Macro Setup
FLOKI’s structure follows a clear Elliott Wave sequence as per analyst Bigmike. The first five-wave move peaked near 0.00011259 USDT in early 2024. After that, price entered a corrective ABC wave. Wave A triggered the downtrend, while Wave B marked a lower high. Wave C followed with five sub-waves, bottoming out at the 0.618 Fibonacci level around 0.0000498 USDT.
Price approached the 0.786 level near 0.00002922 USDT but found support before falling further. The corrective move formed a potential ending diagonal, often seen at trend reversals. Moreover, the price now hovers near 0.00005834 USDT, showing a minor bounce. The stochastic RSI also confirmed bullish crossover from the oversold region, supporting recovery potential.
Key Levels and Momentum Align
The upper boundary of the wedge lies near 0.000020000 USDT, setting the breakout target zone. Meanwhile, price trades near critical trendline support. Additionally, Ichimoku Cloud data confirms bearish pressure remains, but structure still favors a bullish breakout.
Hence, if this setup confirms as wave (b), the next rally could complete wave (c), pushing above 0.0003 USDT. Market structure, RSI divergence, and wedge compression signal strong confluence for reversal. Consequently, FLOKI could enter another meme rally season if current support holds firm.
