After 2.5 years, a previously dormant wallet linked to the Floki Inu project made a significant move, triggering a massive sell-off. The wallet transferred 15.22 billion FLOKI tokens, valued at $2.27 million, to Binance. The transaction occurred just nine hours before FLOKI’s price experienced a sharp decline.Â
According to on-chain data, this particular wallet received the tokens from the Floki deployer in early 2022 when FLOKI was priced at $0.0000307. This sudden movement of a large amount of FLOKI back into circulation has caused concern among investors, likely contributing to the downward pressure on the token’s price. The FLOKI token saw a substantial drop in value following the transaction, with its price declining to around $0.0001289, marking a significant decrease of 15.23% in 24 hours.
Technical analysis further supports the bearish outlook for FLOKI. The price has broken below the key support level at $0.00013575, indicating a potential for more downside movement. The RSI (Relative Strength Index) has fallen to 44.29, which signals increasing selling pressure. A drop below 50 on the RSI typically suggests that bearish momentum is gaining strength. Additionally, the Moving Average Convergence Divergence (MACD) indicator has crossed into negative territory, reinforcing the likelihood of continued price declines.
Source: Tradingview
The broader market context also plays a role in FLOKI’s price action. The cryptocurrency market has seen a wave of sell-offs, with many altcoins experiencing similar declines. FLOKI’s market cap has dropped by over 16% to $1.21 billion, reflecting the broader trend. The 24-hour trading volume has also decreased by 6.75%, standing at $521.99 million, indicating reduced investor confidence.
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The Bollinger Bands on the daily chart further highlight the increased volatility in FLOKI’s price. The price is moving closer to the lower band, suggesting that FLOKI could face further declines if the selling pressure continues. This aligns with the recent trading activity, as the token’s price struggled to maintain previous support levels, raising concerns about its near-term outlook.
