FLOKI: Is the Bottom In? Key Levels and Scenarios Ahead
Key Observations:
The downward movement since late November represents an expanding diagonal (extended diagonal), confirmed by the sequential expansion of waves, increasing amplitude, and a gradual decrease in momentum at the final stage. Like an impulse, this structure is a motive wave.
Based on wave structure, a surge in volume, and low momentum, the price bottom is likely in, and an upward movement is expected.
What’s Next?
Expected Correction:
With a high probability, BINANCE:FLOKIUSDT will retrace the previous decline to the 0.5 – 0.618 Fibonacci zone. This range also includes key moving averages (MA20-W, MA200-d) and a three-day imbalance (FVG 3D).
Uncertainty in Further Growth:
The key question remains: will this be merely a compensation for the previous drop, or the start of a bullish rally? Final conclusions can only be drawn after analyzing retracement dynamics and price reaction to key resistance levels.
Global Scenarios:
On a higher timeframe, I currently have two primary scenarios if the current structure is confirmed as corrective.
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COINBASE:FLOKIUSD
