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crypto.news 2025-06-24 19:01:45

Floki approaches key support: will a Double Bottom trigger a reversal?

Floki approaches key support: will a Double Bottom trigger a reversal?

Floki is nearing the origin of its last major rally after a prolonged decline. A double bottom formation could be in play, but only if key levels and volume align. Floki ( FLOKI ) has been in a sustained downtrend after rejecting from the value area high and losing the point of control. This momentum shift triggered a broad correction, with price now nearing the origin of its previous major rally, a region that may act as the foundation for a potential double bottom reversal, if confirmed with structure and volume. Key technical points Current Trend: Bearish correction after rejection from key resistance. Critical Support Zone: Approaching previous rally origin, potential double bottom area. Volume Behavior: Low during decline, volume surge required for bullish confirmation. Reversal Signal: Reclaiming the value area high would confirm structure shift. FLOKIUSDT (1D) Chart, Source: TradingVIew Floki’s decline began with a clean rejection at the value area high and a breakdown through the point of control, signaling weakening structure and a shift in trend. Since then, price action has drifted lower with minimal volume support, highlighting a lack of buyer conviction. Now, Floki is trading near the origin of its last major rally, an area that previously triggered strong upward momentum. If price can hold this support zone and establish a base, there is a strong technical case for a double bottom formation. However, this setup is still in early development. You might also like: How LET mining offers stable cloud mining returns Confirmation would require Floki to consolidate in this region and reclaim the value area high with a meaningful increase in volume. Without an influx of demand, the double bottom setup could fail, leaving room for continued downside. This formation represents a key inflection point within the broader trading range. Until Floki reclaims high timeframe resistance with conviction, price is likely to remain rotational. What to expect in the coming price action Floki is nearing a make-or-break support level. If a double bottom forms and the value area high is reclaimed on volume, a new rally could begin. Otherwise, further downside remains in play. The developing structure is worth watching, as it may signal the early stages of a macro reversal, but only if bulls step in decisively. Read more: Sonic’s rebound lacks volume; bearish structure not yet broken

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