An analyst who follows the cryptocurrency market closely stated that meme token Floki (FLOKI) is poised to rally to new all-time highs soon. In a statement to his 306,200 followers on social media platform X, pseudonymous analyst Bluntz stated that FLOKI appears to have completed an ABC correction on the daily chart.
Analysis Method
Bluntz uses Elliott Wave Theory, which causes a five-wave movement to begin before moving upwards. According to this theory, an asset in an uptrend tends to initiate a five-wave upward move after completing the ABC correction.
FLOKI’s Future
The analyst stated that FLOKI showed an ABC correction in a new high time frame from the highs in November and that a fresh push movement has begun, stating that it is inevitable that it will reach a new all-time high before the end of the cycle.
“FLOKI is another big meme and I think it is trending up as turbo. ATH is inevitable before the end of the cycle.” – Bluntz
US Dollar Index (DXY) and Its Effects
The analyst also continues to monitor the US Dollar Index (DXY), which investors use to measure risk appetite. Bluntz noted that DXY is declining after holding a key Fibonacci resistance level and ABC has completed its upward correction. He stated that he expected the index to fall below 100.
“DXY now appears to be in position at the top, reaching 108 as I expected and breaking an important 0.618 level. “I expect a long, slow ABC downtrend.” – Bluntz
A downtrending DXY chart usually indicates that investors are shedding the US dollar to accumulate risk assets. At the time of writing, DXY is hovering around 108.
Market Trends
Bluntz noted that risk assets are performing quite well despite the DXY rise, which is counter-intuitive. He thinks DXY will return below 99 in 2025.
The future of meme tokens like FLOKI is shaped according to technical analyzes and market trends made by analysts. Investors can make more informed decisions by evaluating such data.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
