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FLOKI Gains 18% After Breaking Three-Month Descending Resistance Pattern

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Alexey BondarevJan, 05 2026 10:31
FLOKI Gains 18% After Breaking Three-Month Descending Resistance Pattern

FLOKI posted an 18% gain over the past day, marking a sharp reversal after the memecoin declined nearly 72% throughout the previous year. Trading volume reached $147.7 million as the token broke through a three-month descending resistance line that had constrained price action since October.

What Happened: Price Breakout

FLOKI rallied after breaking above a descending resistance pattern that kept the memecoin under selling pressure for the entire fourth quarter of 2025. The breakout occurred on the third attempt, with momentum pushing the price higher as volume climbed substantially.

The token could revisit $0.00008930, a level last reached on Oct. 11, if current momentum continues.

Chart analysis shows several zones where selling pressure may emerge as the price approaches that target, particularly near the peak of the former descending resistance line.

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Why It Matters: Sustainability Questions

The Parabolic Stop and Reverse indicator shows dots forming below the price, suggesting rally conditions remain favorable for continued upward movement. The Money Flow Index rose above 50 in bullish territory, indicating capital inflows are supporting the price advance.

However, the Accumulation/Distribution indicator presents a more complex picture despite the bullish signals.

While the A/D line trended higher over the past day, showing buying outweighed selling in the short term, it remained in negative territory overall.

This suggests sellers remain active in the market and could regain control, potentially capping FLOKI at lower levels before it reaches the identified target zone.

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Disclaimer and Risk Warning: The information provided in this article is for educational and informational purposes only and is based on the author's opinion. It does not constitute financial, investment, legal, or tax advice. Cryptocurrency assets are highly volatile and subject to high risk, including the risk of losing all or a substantial amount of your investment. Trading or holding crypto assets may not be suitable for all investors. The views expressed in this article are solely those of the author(s) and do not represent the official policy or position of Yellow, its founders, or its executives. Always conduct your own thorough research (D.Y.O.R.) and consult a licensed financial professional before making any investment decision.