Why FLOKI is rallying despite a 72% yearly crash

FLOKI has risen over the previous day regardless of a turbulent 12 months that noticed the memecoin decline by practically 72%.

On the time of writing, the memecoin was up 18%, a transfer that will trace at renewed investor curiosity available in the market.

Nevertheless, questions stay over whether or not this curiosity in FLOKI [FLOKI] is sustainable. From a technical perspective, AMBCrypto examines the chart to offer readability.

FLOKI breaks a bearish chain

The latest rally adopted a breakout from a descending resistance line that had stored the value in a sustained decline for a complete quarter, between October and December 2025, as promoting stress intensified.

This time, momentum on the third breakout try proved robust sufficient to push FLOKI greater, with buying and selling quantity climbing to $147.7 million.

Supply: TradingView

If this momentum holds, the breakout might enable the memecoin to revisit the excessive of $0.00008930 on the chart, which occurred final on the eleventh of October.

The blue-marked zones spotlight areas the place FLOKI might face promoting stress as the value strikes towards the goal, which aligned with the height of the previous descending resistance.

This raises a key query: can momentum maintain a transfer towards that stage? Indicators supply some encouraging indicators.

Potential bullish consequence

The Parabolic Cease and Reverse (SAR) indicator steered that rally circumstances stay favorable.

This sign got here from the SAR dots forming beneath the value. When dots seem beneath worth motion, it sometimes factors to a better chance of continued motion in that route.

Traditionally, this development performs out when SAR dots observe beneath worth throughout rallies, whereas dots above worth have a tendency to strengthen bearish circumstances.

Supply: TradingView

In the meantime, the Cash Move Index (MFI) continued to rise, with readings holding above the 50 mark in bullish territory. This steered stronger capital inflows into FLOKI.

Sustained inflows would assist the bullish case, rising the chance of a push towards the beforehand recognized goal zone on the chart.

A be aware of warning

Regardless of the broadly bullish tone and upward-facing indicators, the Accumulation/Distribution (A/D) indicator introduced a extra nuanced image.

The A/D indicator measures shopping for and promoting stress by monitoring whether or not market exercise is dominated by accumulation or distribution.

Supply: TradingView

At press time, the A/D line trended greater, indicating that purchasing has outweighed promoting over the previous day. Nevertheless, it remained in unfavourable territory, signaling that broader sentiment nonetheless leans bearish.

This steered that whereas short-term circumstances seem constructive, sellers stay lively and will regain management, doubtlessly preserving FLOKI capped at decrease ranges.

Closing Ideas

• FLOKI’s breakout marked a significant shift after months of sustained draw back stress.
• Whereas momentum and inflows supported additional upside, lingering distribution steered patrons should still face resistance.