FLOKI [FLOKI], has made a strong comeback in May after months of underperformance. The token saw a notable spike in both price and volume, with its daily trading volume jumping 107% in recent sessions. During this rally, FLOKI climbed nearly 17% to a local high of $0.000123 before correcting by about 10% to trade near $0.000109 at the time of writing. Despite the short-term volatility, the broader trend suggests bullish momentum is building, with critical technical zones now coming into focus for traders and investors alike.

The recent rally was not just a price event—it marked a structural shift in FLOKI’s daily chart. The coin had been in a clear downtrend since mid-December 2024. However, this bearish pattern was broken decisively in April when FLOKI surged past the $0.0000695 mark. This level, which had acted as a bearish order block, is now considered a bullish breaker block due to the successful price action above it. This change signals a strong bullish reversal and sets the stage for further gains.

Fueling this bullish case are technical indicators showing increasing demand. The On-Balance Volume (OBV) indicator has moved above its previous highs from February 2025—levels it failed to break in April—indicating strong buying pressure. Similarly, the Chaikin Money Flow (CMF) is firmly in positive territory above +0.05, reinforcing that capital inflows are healthy and consistent. These technical signals point to renewed market interest and accumulation, both of which are necessary to sustain an extended rally.

Based on the Fibonacci retracement levels from FLOKI’s major move in November 2024, the next significant target lies at the 61.8% retracement mark, near $0.000135 to $0.00014. If momentum holds and market conditions remain favorable, FLOKI could see another 22% upside from current levels, making this zone a key area of interest for bulls.

However, the path to higher prices may not be straightforward. Recent liquidity data reveals that the $0.000107 region—corresponding to previous highs from February—has been a magnet for price activity. According to data from Coinglass, this area saw heavy liquidation buildup over the past three months, which contributed to the recent surge and subsequent pullback. This kind of liquidity-driven move often results in short-term corrections before the trend resumes.

A closer examination of the 1-week liquidation heatmap reveals that the $0.0001 mark and the $0.000092–$0.000095 range are dense with liquidation clusters. These zones are likely to be revisited if price continues to retrace in the short term. However, such dips are not necessarily bearish. In fact, they may present high-probability entry points for traders looking to ride the next leg of the rally. As long as these support levels hold, the overall bullish structure remains intact.

Of course, much of FLOKI’s price action is still correlated with Bitcoin [BTC] and the broader crypto market sentiment. Bitcoin’s strong performance in early May helped lift coins and altcoins across the board. Should BTC continue its upward trajectory, it would provide a favorable macro backdrop for FLOKI’s next breakout attempt. On the other hand, if Bitcoin experiences a sharp correction, it could drag FLOKI down with it, especially if market confidence weakens.

In conclusion, FLOKI appears well-positioned for further upside if it can maintain its bullish structure and capital inflows. The key support levels to watch are $0.0001 and the $0.000092–$0.000095 region, while the upside target remains at the $0.000135–$0.00014 zone. A successful defense of support and continued momentum could see FLOKI rally another 22% in the near term. Traders and investors should monitor these zones closely, while also keeping an eye on Bitcoin’s trend as a leading indicator for crypto coin sentiment. In the volatile world of crypto, FLOKI may be just getting started on its next move.