Will bulls assist Floki Inu to break this pattern?

Lavina Daryanani

For a second consecutive day, the cumulative capitalization of the crypto market managed to stay afloat and reflect a value of $2 trillion. The broader market recovery post the valentine’s dip, led by meta-tokens, has been quite vigorous. As top coins like Bitcoin, Ethereum, Cardano, XRP, and Solana appreciated by 1%-3% on Friday, Floki Inu posed a significant 6% daily yield.

In fact, at the time of press, FLOKI seemed to be in a much better position when compared to other coins in the same boat, including Dogecoin, Shiba Inu, Dogelon Mars, and BabyDoge. All the said coins’ returns were capped under 3% as well.

Post its glitzy performance over the past day, the question remains, would Floki Inu be able to seamlessly advance in the same direction or would it be hindered?

Floki Inu is in a Hornet’s Nest

Since November last year, Floki Inu has been engulfed within a descending channel. It did attempt to break out of it a couple of times last year, but it was unsuccessful in doing so. However now, in its first attempt in 2022, FLOKI is on the verge of freeing itself from the shackles of the upper trend line of the said setup.

Its journey would, however, not be that easy. The token is currently trading at a right under its 50 Day Moving Average [DMA]. The said level has resisted the coin from breaking above its a host of times this year.

Now, even if FLOKI manages to march past it, it would be re-hindered by another long-term average – the 200 DMA. In December last year, when the coin attempted to tread above it, the 200 DMA couldn’t provide adequate support. Hence, all the three break-above back then were pretty short-lived.

Source: TradingView

Nonetheless, bulls have started inducing pressure over the past few hours and the daily 6% inclination is a testament to the same. So, if the bullish bias becomes even more acute over the next few hours, Floki Inu would be able to step out of its claustrophobic channel and breathe some fresh air. However, a failure to do so would see FLOKI fall at the behest of sellers yet again.