Floki (FLOKI) has been drawing attention in the crypto market, especially with its recent price performance. Over the last 7 days, the token has seen a strong increase of over 18%, despite a minor dip of 2,43% over the last 24 hours as of press time. This price action comes amidst critical developments within the FLOKI ecosystem, particularly concerning token burns and strategic announcements.

A pivotal moment for Floki is on the horizon with the FLOKI DAO’s decision to conduct a significant token burn. The community has overwhelmingly supported this initiative, with 99.84% voting in favor of burning 15.246 billion tokens. This substantial reduction in the circulating supply is set to occur within the next week, May 22nd, and is expected to induce scarcity, potentially driving up the token's value.

Token burns are a common strategy used by crypto projects to manage inflation and improve the intrinsic value of the tokens remaining in circulation. In Floki's case, this move could particularly bolster investor confidence, as reducing supply often leads to an appreciation in price if demand remains stable or increases.

FLOKI Technical Analysis

The technical outlook for FLOKI is bullish. The token recently broke out from a symmetrical triangle and a bullish flag pattern, both of which are typically regarded as continuation patterns. This suggests that the upward trend Floki was experiencing before the patterns formed is likely to continue.

Since early March, Floki had been confined within these patterns after hitting a high of $0.00031500 on March 13th. It then corrected by 63%, finding double support and creating a low of $0.00011434. The support levels included the lower boundaries of the bullish flag and the symmetrical triangle.

Looking ahead, if FLOKI maintains its momentum above the ascending trendline—which coincides with the symmetrical triangle support—the token could target recent lower highs at $0.00022110, $0.00026751, and $0.00031500. A sustained bullish drive could even push it towards a new, fresh all-time high, with a potential 139% price gain forecasted, aiming for a peak at $0.00038.

Key Metrics Supporting Bullish Sentiment?

Supporting the technical forecast are several key metrics. FLOKI's long-short ratio is currently high, indicating that the majority of market participants are bullish on FLOKI. A higher long-short ratio generally reflects a market expectation of upward price movement.

The MFI from the trading view chart above is also high, which points to a strong influx of buying pressure. This index measures the flow of money into and out of an asset over a period and is often used to predict the continuation of current trends.

The MACD for FLOKI is showing a strong positive signal. This indicates that the short-term momentum, represented by the 12-day Exponential Moving Average (EMA), is stronger than the long-term momentum, represented by the 26-day EMA. Positive MACD values suggest that the upside momentum is increasing, which aligns with the potential for further price increases.

With all these factors in play, FLOKI is gearing up to record new all-time highs.