Why FLOKI is rallying despite a 72% yearly crash

FLOKI has risen over the past day despite a turbulent year that saw the memecoin decline by nearly 72%.

At the time of writing, the memecoin was up 18%, a move that may hint at renewed investor interest in the market.

However, questions remain over whether this interest in FLOKI [FLOKI] is sustainable. From a technical perspective, AMBCrypto examines the chart to provide clarity.

FLOKI breaks a bearish chain

The recent rally followed a breakout from a descending resistance line that had kept the price in a sustained decline for an entire quarter, between October and December 2025, as selling pressure intensified.

This time, momentum at the third breakout attempt proved strong enough to push FLOKI higher, with trading volume climbing to $147.7 million.

If this momentum holds, the breakout could allow the memecoin to revisit the high of $0.00008930 on the chart, which happened last on the 11th of October.

The blue-marked zones highlight areas where FLOKI could face selling pressure as the price moves toward the target, which aligned with the peak of the former descending resistance.

This raises a key question: can momentum sustain a move toward that level? Indicators offer some encouraging signals.

Possible bullish outcome

The Parabolic Stop and Reverse (SAR) indicator suggested that rally conditions remain favorable.

This signal came from the SAR dots forming below the price. When dots appear beneath price action, it typically points to a higher likelihood of continued movement in that direction.

Historically, this trend plays out when SAR dots track below price during rallies, while dots above price tend to reinforce bearish conditions.

Meanwhile, the Money Flow Index (MFI) continued to rise, with readings holding above the 50 mark in bullish territory. This suggested stronger capital inflows into FLOKI.

Sustained inflows would support the bullish case, increasing the likelihood of a push toward the previously identified target zone on the chart.

A note of caution

Despite the broadly bullish tone and upward-facing indicators, the Accumulation/Distribution (A/D) indicator presented a more nuanced picture.

The A/D indicator measures buying and selling pressure by tracking whether market activity is dominated by accumulation or distribution.

At press time, the A/D line trended higher, indicating that buying has outweighed selling over the past day. However, it remained in negative territory, signaling that broader sentiment still leans bearish.

This suggested that while short-term conditions appear constructive, sellers remain active and could regain control, potentially keeping FLOKI capped at lower levels.

Final Thoughts

• FLOKI’s breakout marked a meaningful shift after months of sustained downside pressure.
• While momentum and inflows supported further upside, lingering distribution suggested buyers may still face resistance.