FLOKIUSDT.The chart for FLOKI/USDT shows an interesting pattern that warrants a closer examination. The price is oscillating within a rising wedge pattern, which is typically considered a bearish pattern despite the overall uptrend.
The Ichimoku Cloud is still below the price, indicating bullishness in the medium-term trend. Yet, the price is below the Conversion Line (blue), which might suggest a short-term bearish bias or a correction phase. The Lagging Span is above the price action but is approaching it, which could be an early warning sign of a potential downturn if it crosses below the price.
The RSI is at the midpoint, around 51, which is neutral territory. This doesn't provide a strong directional bias, but the fact that it's not in the overbought region means there is room for the price to move in either direction without immediate pressure from overbuying.
The MACD is showing a very slight bullish momentum as the MACD line is above the signal line, but just barely, and the histogram bars are quite small. This indicates that the bullish momentum is not strong and could easily flip.
Given the rising wedge pattern, which often resolves to the downside, and the indicators showing a lack of strong bullish momentum, I would prepare for the possibility of a downward breakout. The key support levels to watch are marked as S1 at 0.00016105 USDT, S2 at 0.00008947 USDT, and a much lower S3. A breakdown below S1 would increase the likelihood of testing S2 and potentially lower.
I would be cautious about entering long positions within this rising wedge. If I were holding FLOKI, I might consider setting a stop-loss order just below S1 to protect against the potential drop you’re anticipating. If entering a new trade, I would wait for a breakout confirmation. A bearish breakout would have me looking for short positions with targets set at S2 and beyond, while a bullish breakout above the upper trend line of the wedge might cause me to reevaluate for a potential continuation of the uptrend.
