Key Takeaways:
- Binance.US announced the addition of the meme token Floki on its platform.
- News of the listing propelled FLOKI price to register 77% gains.
NEW DELHI (CoinChapter.com) — Binance.US, a subsidiary of crypto exchange Binance, announced that it would list the meme token Floki Inu (FLOKI) on its platform.
The exchange has listed FLOKI/USD and FLOKI/USDT trading pairs on its platform. Given the recent resurgence of memecoins, it seems Binance.US decided to cash in on the hype after Binance’s recent troubles with US regulators.
Although Floki started as a meme token based on Elon Musk’s pet dog, the blockchain project has expanded its ecosystem to include DeFi, NFT collections, P2E games, etc.
FLOKI Price Forms Bull Pennant Pattern
FLOKI, the namesake in-house token of the Floki ecosystem, formed a bullish technical pattern called the Bull Pennant.
In detail, the pattern emerges when an asset consolidates between two converging trendlines after a price rally. Ultimately, a breakout in the direction of the large initial movement follows the period of consolidation.
Volume is important in the pattern. During consolidation, the volume should be low while it must increase during the breakout move. Otherwise, prices would likely pull back into the consolidation pattern.
Per the rules of technical analysis, the FLOKI price could jump 665% to $0.00035 once the token confirms the pattern.
Meanwhile, the listing news expectedly propelled the hype-centric token. Instead, the rally helped the FLOKI price rise more than 77% to form a daily high near $0.0000499 before paring some of the day’s gains.
Moreover, the uptrend helped the meme token reclaim the 100-day EMA (blue wave) support, which FLOKI prices flipped on April 20. If the rally continues, the FLOKI price could rise to its resistance near $0.00004687.
Breaking and consolidating above the immediate resistance level could help FLOKI token price challenge resistance near $0.00005546 before downside corrections pare gains.
FLOKI’s meteoric rise also pushed the token’s RSI near the overbought threshold, clocking at 63.06 on the daily timeframe. Overbought RSI levels often precede an impending bearish trend reversal.
As a result, traders consider the occurrence a sell signal, which might force the FLOKI price to drop to its support near $0.0000399. Moreover, breaching the immediate support level might result in the meme token falling to test its support near $0.00003325 before recovering.
