The price rally of FLOKI to $0.00008534 remains in force, with bullish trends over key Fibonacci and horizontal support levels.
Compression at $0.00007900 shows a critical test of support, as traders anticipate a break or potential bearish continuation.
Analysts warn that this is a rounding top formation, so a break below $0.00007900 could trigger a sell-off even after the recent gain.
FLOKI was trading at $0.00007917 on MEXC, with a 3.25% daily increase, high of $0.00007951, and low of $0.00007639. Price has been stuck in the essential $0.00007900 range, where horizontal support is overlapping with the rounding top neckline. This range is becoming essential for short-term sentiment since the token is testing buyer conviction at a technical turning point.
TradingView charts on June 6 showed a steady upward rally from 03:00 as price moved from lows of about $0.00007700 to highs of about $0.00008600 by 12:30. Support gained strength after 05:00 with the price crossing above $0.00007800 on steadily maintained buying interest. A sequence of higher highs and higher lows from 06:00 to 09:00 reinforced bullish continuation themes above the $0.00008000 level.
Source: TradingView
The price briefly consolidated before surging through the $0.00008200 resistance zone, forming a strong base for the next leg higher. Volume remained consistent throughout the day, with volatility under control as every dip was absorbed by renewed buying. Support held firm above $0.00008400 during a short retracement, reinforcing bullish structure through the close at $0.00008534.
The upward trajectory respected key Fibonacci zones, retracing lightly toward the 23.6% level near $0.00008400 before rebounding. No breach below trendline support was recorded during the session, and buying strength built steadily into the close. Volume profile analysis highlighted sustained liquidity with minimal resistance from sellers, indicating a decisive bullish control phase across the session.
Analyst Insights Signal Potential Reversal Despite Short-Term Bullish Action
A detailed breakdown from Alpha Crypto Signal points to a possible shift in momentum. The analyst notes that FLOKI is forming a rounding top pattern on the daily chart, historically a bearish reversal setup. Price currently tests its neckline, aligned with horizontal support near $0.00007900, making this area critical for the next directional move.
According to market analyst Alpha Crypto Signal, a breakdown below this neckline with volume could trigger a sharp sell-off. Until that happens, no confirmed setup is visible, leaving traders in observation mode as the token tests technical boundaries. The EMA-9 sits at $0.00008496 while the SMA-50 rests at $0.00008782, reinforcing overhead resistance that caps further gains.
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The analyst highlights that recent candles cluster near the lower edge of the consolidation band, signaling compression near key moving averages. Momentum loss is evident after the peak at $0.00012500 in early May, suggesting exhaustion at higher levels. However, consistent defense of the $0.00007700 zone signals underlying buyer conviction.
At the outset, it’s worth clarifying that current developments point to a deeper shift unfolding across the market landscape. The $0.00007900 neckline level will be critical—either confirming a bearish continuation or invalidating the rounding top entirely. A daily close above the EMA-9 could open the door to challenge the SMA-50 and potentially retest $0.00008600.
What’s unfolding here suggests broader forces are at play, with early signs hinting at either a breakout or a looming correction. Traders should monitor volume closely as compression tightens against resistance levels. Confirmation of direction may arrive once price decisively exits the current consolidation pattern.
Community chatter reinforces this outlook, with sentiment split between bullish breakout hopes and cautious retracement warnings. As support continues holding, bulls eye a retest of recent highs, while bears remain on alert for a neckline break. The next 24 hours may provide key confirmation of FLOKI’s short-term trajectory.
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