A closely followed analyst believes that the Floki meme token (FLOKI) is bracing for rallies en route to new all-time highs (ATH).
Pseudonymous analyst Bluntz tells his 306,200 followers on social media platform X that FLOKI appears to have made an ABC correction on the daily chart.
Bluntz uses Elliott Wave Theory, which states that a bullish asset tends to trigger a five-wave bullish move after making an ABC retracement.
“FLOKI is another major meme that looks turbo bullish in my opinion and is heading towards the ATHs.
Price action from the November highs looks like another ABC high period with further momentum 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 rise by almost $0.0004 by March. At the time of writing, FLOKI is worth $0.0002.
The analyst also monitors the US Dollar Index (DXY), which traders use as a barometer of investors’ risk appetite. According to Bluntz, the DXY appears bearish after respecting a key Fibonacci resistance level and entering into a bullish ABC correction. He now expects the index to fall below 100.
“DXY looks at the top now, hit 108 as I expected, hit a major level of 0.618 and looks like a long slow ABC after an impulsive move lower.
Risk assets held up extremely well to the rise in the DXY, which was counterintuitive.
I think we’ll start to get back below 99 in 2025.”
A bearish DXY chart generally suggests that investors are offloading their US dollars to accumulate risky assets such as cryptocurrencies and stocks. At the time of writing, the DXY is hovering at 108.
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