FLOKI, a popular memecoin, surged 25% in the last 24 hours, fueled by $121 million in derivatives inflows and a 162% increase in Open Interest, reaching $37.5 million. The broader memecoin market also saw a 5.5% rebound, with FLOKI leading the gains. However, technical indicators such as the Relative Strength Index (RSI) suggest the asset is overbought, raising concerns about a potential price correction. Despite the bullish momentum, with long positions dominating the derivatives market and $275,000 in short positions liquidated, analysts warn of a possible reversal. The Average Directional Index (ADX) at 38 indicates a strong trend, but the overbought RSI above 70 suggests caution as the market could face a short-term pullback.