Floki Inu (FLOKI) recently experienced a drastic decline of close to 20%, resulting in its position dropping among the top 5 meme coins in the market. The current trading price of FLOKI stands at approximately $0.0001272, with a market capitalization of $1.23 billion. As a result of this downturn, Bonk Inu (BONK) has overtaken FLOKI to claim the fifth spot, with a market cap of $1.25 billion.
The steep drop in FLOKI’s price occurred shortly after a wallet associated with the meme coin deposited over 15 billion tokens (equivalent to nearly $2.3 million) into Binance. This wallet had been inactive for two and a half years, accumulating the tokens back in early 2022 when FLOKI’s price was at $0.0000307. If all the FLOKI tokens were sold upon deposit, the trader would have made a profit exceeding $1.8 million. Such large sell-offs contribute to an increase in the circulating supply of the asset, potentially leading to a further decline in price.
Despite the significant price drop, some analysts remain optimistic about the future of FLOKI. One analyst, X user Scofield, foresees a potential rally for the asset, believing that it possesses strong fundamentals compared to other meme coins. Scofield expressed confidence in FLOKI becoming the primary meme coin of the current bull run. Another analyst, Jelle, pointed out that FLOKI’s price has been consolidating around the crucial resistance level of $0.00012789. They suggested that a breakthrough above this level could trigger a rally of up to 60%.
Looking ahead, it is essential to monitor how FLOKI responds to market dynamics and investor sentiment. The impending rally anticipated by some analysts could provide a positive trajectory for the meme coin’s price. However, it is crucial to consider the potential impact of further large sell-offs on FLOKI’s price and market position. Investors and traders should exercise caution and conduct thorough research before making any decisions regarding FLOKI or any other meme coin in the volatile cryptocurrency market.
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