FLOKI’s Price action: A Potential Bullish Reversal on the Horizon
FLOKI has rebounded from a crucial support level and is now trading within a defined range. This movement suggests a possible bullish reversal could be approaching.
last week, FLOKI faced a strong bearish pressure, pushing the price into a major support zone. However, it bounced back perfectly from the 0.618 Fibonacci retracement level. Despite this rebound, the price is now facing resistance within a high time frame range.
The coin is currently trading between two key support and resistance levels. The next notable move will likely determine the future direction. However,the liquidity and broader market structure indicate that another slight decline might occur before a confirmed breakout.
- Bounce from 0.618 Fibonacci: The price reacted strongly off this key retracement level, initiating the current rebound.
- Trading Between HTF Levels: The price is consolidating between high time frame resistance and support, waiting for a breakout.
- Three Drives Pattern Developing: The price may complete a third liquidity sweep before confirming a bullish reversal.
after last week’s sell-off,FLOKI found support at the 0.618 Fibonacci retracement.Although the bounce was significant, it hasn’t broken through the high time frame resistance and has settled into a range. A notable liquidity low from previous structure remains intact.These lows often act as magnets, attracting price as market makers look to trigger stop orders before a larger move.
A sweep of this liquidity low could complete the third leg of a developing Three Drives pattern, a classic signal of a bullish reversal when confirmed by volume.
If this third drive occurs, it will likely retest or slightly undercut the 0.618 Fibonacci level again. Completing this pattern would present a compelling reversal setup, especially if accompanied by a volume uptick. From there, the path toward VWAP resistance and the previous value area high becomes more favorable, increasing breakout potential.
Traders should watch for a reclaim of the HTFR and VWAP resistance as key signals of confirmation. Until than, the price remains range-bound, with downside liquidity risk still in play.
