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Why Did Floki Inu (FLOKI) Tumble by 19% Daily?

Summary:
TL;DR Floki Inu (FLOKI) saw a sharp decline of nearly 20%, losing its place among the top 5 meme coins. Despite the drop, some analysts remain optimistic, predicting a possible rally if the token’s price surpasses an important resistance level. FLOKI Bleeds Heavily The price of the popular meme coin Floki Inu (FLOKI) is down almost 20% on a daily scale, currently trading at around %excerpt%.0001272. FLOKI Price, Source: CoinGeckoFLOKI’s market capitalization plunged to .23 billion, making it the sixth-biggest meme coin. Bonk Inu (BONK), whose market cap is .25 billion, surpassed its rival to claim the fifth spot.  Data analytics platform Spot On Chain revealed that Floki Inu’s retreat happened mere hours after a wallet linked to the meme coin deposited over 15 billion tokens

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TL;DR

  • Floki Inu (FLOKI) saw a sharp decline of nearly 20%, losing its place among the top 5 meme coins.
  • Despite the drop, some analysts remain optimistic, predicting a possible rally if the token’s price surpasses an important resistance level.

FLOKI Bleeds Heavily

The price of the popular meme coin Floki Inu (FLOKI) is down almost 20% on a daily scale, currently trading at around $0.0001272.

FLOKI Price
FLOKI Price, Source: CoinGecko

FLOKI’s market capitalization plunged to $1.23 billion, making it the sixth-biggest meme coin. Bonk Inu (BONK), whose market cap is $1.25 billion, surpassed its rival to claim the fifth spot. 

Data analytics platform Spot On Chain revealed that Floki Inu’s retreat happened mere hours after a wallet linked to the meme coin deposited over 15 billion tokens (equivalent to almost $2.3 million) to Binance.

The address had been inactive for two and a half years, accumulating the stash in early 2022 when the asset’s price stood at $0.0000307. If they sold all FLOKI tokens upon depositing, the trader’s profit would be more than $1.8 million.

Large sell positions create an increase in the circulating supply of the involved asset, which could lead to a price decline (assuming demand has kept its level or has headed south). Such actions can also cause panic among investors and result in additional selling pressure and further pain for bulls. 

Is a Bounce Incoming?

Some crypto analysts remained unfazed by FLOKI’s substantial drop, predicting an upcoming rally. The X user Scofield envisioned an aggressive rebound for the asset’s price, possibly leaving “many sidelined.”

“Floki already boasts the strongest fundamentals of any meme coin, and instead of resting on its laurels, it continues to double down on fundamentals. I strongly believe FLOKI will be the main meme coin of this bull run, and nothing has deterred me from this belief so far,” they added.

Jelle claimed the token’s price has been hovering around the major resistance level of $0.00012789 in the past week. The trader argued that a surge above that figure could be followed by a rally of almost 60%.

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