FLOKI price has rebounded strongly from a key support level following renewed investor interest sparked by an X post from Elon Musk. Now, the big question is whether the token can breach the next key psychological resistance in the coming weeks, supported by this renewed momentum.

According to data from crypto.news, Floki (FLOKI) surged nearly 30% to an intraday high of $0.000088 on Monday, Oct. 21, before giving up some gains and settling around $0.000073 at the time of writing. 

Floki started rallying shortly after tech tycoon and billionaire Elon Musk shared an AI-generated video featuring his Shiba Inu dog, also named Floki, comically portrayed as the CEO of X.

Floki is named after and inspired by Elon Musk’s Shiba Inu dog. Even though Elon Musk has no direct involvement with the meme coin, posts related to his dog have often led to a surge in FLOKI price. Such rallies are typical of meme coins that thrive on community hype.

Likewise, this time, Musk’s post also ignited a frenzy of activity, with FLOKI’s trading volume skyrocketing by over 700% in just 24 hours. The surge in volume signaled intense interest from traders and injected fresh momentum into the meme coin’s price action.

For those unfamiliar, Elon Musk has a long track record of influencing the price of dog-themed tokens such as Dogecoin and Floki through social media. As reported by crypto.news earlier, Dogecoin spiked 11% on March 14 last year after Musk teased the possibility of using the coin for Tesla purchases.

Adding to the bullish narrative at press time, FLOKI has also seen a steady reduction in its circulating supply thanks to ongoing token burns. Data from Dune reveals that over 1.5 billion tokens have been burned since September, bringing the circulating supply down to roughly 9.65 trillion. These burns are mostly driven by activity across the Floki ecosystem, including platforms like Valhalla, TokenFi, and FlokiFi.

Further, the latest rebound comes as the meme coin market as a whole was recovering from a brutal crash triggered by renewed trade tensions between the United States and China. 

Earlier this month, the total meme coin market lost nearly 40% of its value in a matter of days, dropping from a market cap of $72 billion to just $44 billion. Before the market could stabilize, another sharp correction wiped out $230 billion across the broader crypto space in a single day.

Despite the recent gains, analysts have warned that the current rally is largely driven by short-term hype and the meme coin could be subject to volatility in the upcoming trading sessions.

That said, some remain optimistic. Analysts at Crypto Catalysts are calling for further upside, projecting a potential 310% rally from current levels if the token breaks out of a descending triangle pattern observed on the weekly chart.

Floki price analysis

On the daily chart, Floki’s price has rebounded from a descending trendline that has been in place since mid-July. The trendline has acted as a strong support level, repeatedly halting bearish advances.

A closer look at technical indicators suggests that momentum may be gradually shifting in favor of the bulls.

Most notably, the MACD line has crossed above the signal line, forming a bullish crossover. In technical analysis, such a crossover is often viewed as a strong early sign that upward momentum could be building.

Meanwhile, the Relative Strength Index has also climbed from oversold territory and is now hovering near the neutral zone. This move suggests that the token is regaining strength and still has room to run before hitting overbought levels.

As such, $0.00010 remains the most likely target for FLOKI, and a clean breakout above this could act as a potential confirmation of a larger trend reversal, setting the stage for a stronger rally in the days ahead.