A closely followed analyst believes the meme token Floki (FLOKI) is gearing up for rallies en route to fresh all-time highs (ATHs).
Pseudonymous analyst Bluntz tells his 306,200 followers on the social media platform X that FLOKI appears to have completed an ABC correction on the daily chart.
Bluntz uses the Elliott Wave theory, which states that a bullish asset tends to ignite a five-wave upside move after completing an ABC retracement.
“FLOKI is another major meme looking turbo bullish in my opinion and heading to ATHs.
Price action from the November highs looking like another high timeframe ABC with a fresh impulse looking underway, ATH before the end of the cycle is inevitable in my opinion.”
Based on the trader’s chart, he seems to predict that FLOKI will surge close to $0.0004 by March. At time of writing, FLOKI is worth $0.0002.
The analyst is also watching the US dollar index (DXY), which traders use as a barometer for investors’ risk appetite. According to Bluntz, the DXY looks bearish after respecting a key Fibonacci resistance level and concluding an ABC upside correction. He now expects the index to drop below 100.
“DXY looks topped now, hit 108 as I expected, wicked a major 0.618 level, and looks like a long slow ABC up after an impulsive move to the downside.
Risk assets held up extremely well while DXY pumped which was counterintuitive.
I think we start heading back below 99 in 2025.”
A bearish DXY chart typically suggests that investors are unloading their US dollars to accumulate risk assets such as crypto and stocks. At time of writing, the DXY is hovering at 108.
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