• Floki was nearing a breakout, with $0.00028980 as the critical resistance for bullish momentum.
• Market metrics showed optimism, with a 112.57% price-DAA Divergence supporting potential upside.

Floki [FLOKI]is gaining attention as it edged closer to breaking out of its long-term descending channel. At press time, Floki was trading at $0.0002417, down by 0.09%, in the last 24 hours. 

The price is consolidating above the $0.00021129 support level, with key resistance at $0.00024862, as shown by the 0.786 Fibonacci retracement level.

If Floki clears this resistance, it could challenge $0.00028980 and rally toward the next target at $0.00034883. Traders are closely watching for a decisive move to confirm bullish momentum.

Technical indicators suggest a potential for a rally

Fibonacci retracement levels show $0.00024862 as the immediate barrier Floki must overcome. A breakout here could lead to testing $0.00028980, a critical resistance point. Additionally, the Relative Strength Index (RSI) was at 56.21, indicating the market remains in a neutral zone.

This suggests there is room for upward movement if buying pressure intensifies. Moreover, the consolidation near the resistance zone indicates traders are positioning for a breakout, adding to the anticipation.

Daily active addresses show a decline

Floki’s daily active addresses have dropped significantly to 2,096 from 4,085 the previous day. This sharp decline reflects reduced short-term network activity, possibly due to traders waiting for a clear breakout signal.

However, this decrease does not necessarily indicate a lack of interest. Instead, it may suggest caution among market participants as Floki nears a critical point in its price action.

FLOKI liquidations remain low

Interestingly, liquidation data shows $231.96 in liquidated longs, while shorts remain at $0. This suggests that bulls have taken higher risks ahead of the potential breakout, while bears stay on the sidelines.

Thus, the muted liquidation activity reflects market caution as traders await a decisive move. If Floki breaks resistance, liquidation volumes are expected to rise sharply, potentially amplifying volatility.

Price-DAA divergence signals optimism

Floki’s price-DAA divergence climbed to an impressive 112.57%. This sharp increase suggests underlying confidence from long-term holders, even as daily active addresses decline.

Therefore, the divergence highlights optimism for sustained upward momentum, especially if key resistance levels are breached.

Realistic or not, here’s FLOKI’s market cap in BTC’s terms

 Can FLOKI confirm the breakout?

FLOKI is at a critical juncture in its price action. With strong price-DAA divergence and a stable RSI, the token is technically positioned to challenge its resistance levels.

A confirmed breakout above $0.00028980 could spark a rally towards $0.00034883. However, caution is warranted as on-chain activity shows reduced engagement. The next move will determine if FLOKI can seize the momentum and solidify its upward trend.