The price of Floki Inu ($FLOKI) has plummeted by 17.7% over the past 24 hours. This decline follows unexpected movements involving whales.
The wallet has been inactive since the inception of Floki Inu and became active again after 2 years. This wallet, last used in January 2022, suddenly sent 15. 22 billion FLOKI, equivalent to about $2.27 million, to Binance only nine hours before the coin’s value crashed.
The 15.22 billion FLOKI transferred to Binance was initially released from the Floki deployer to this wallet in early 2022. At that time, the value of $FLOKI, whose holders have been in profit this week, was at only $0.0000307.
Floki Inu On-chain Analysis
From CoinMarketCap’s statistics when writing this article, we see that the meme coin fell by 17%. This means that market participants may be worried about large-scale selling or other activities that may lead to further price declines.
FLOKI is said to have a circulating supply of 1 trillion tokens, equivalent to the total token count in the crypto. Based on this, the fully diluted market capitalization is estimated at $1.23B.
Snap | Source: CoinMarketCap
The reactivation of a dormant wallet and the transfer afterward makes one wonder if other potential big holders or whales are likely to do the same. If more big investors decide to close their positions, this may lead to further price drops and increased market fluctuations.
This risk is especially true in low-liquidity markets such as FLOKI, where any slight sell-off can significantly impact the prices.
What’s in Store for Floki Inu?
From the charts of Floki, the price of Floki broke out from the lower border of the ascending channel immediately after the news came out, which suggests a turn in the trend from bullish to bearish. The graph of Floki shows a gradual rise in price, with the price being sandwiched between the two lines of an ascending channel.
Nevertheless, there was a breakdown of the channel’s support, with a sharp price decrease. This breakdown is often viewed as a very bearish signal, which signals the end of the prior bullish trend and the beginning of the bearish trend.
4-hour FLOKI/USDT Chart | Source: TradingView
The current candlesticks are mainly large red, which reflects high-pressure selling. This shows that bears are dominant in the market, and the trend may persist in the short term. The present price level is at approximately 0.00012751 USDT and is now attempting to set new support levels.
Should it remain here, this may serve as a base for a possible turnaround. If the first level of support breaks down, the second primary level can be observed at 0. Analyzing previous price action shows that more robust buying has been observed at 0.00011000 USDT.
This price action level may hold if the price can bounce back. The last support channel of around 0.00014500 USDT will be a significant resistance level, followed by another resistance at 0.00016000 USDT, where the price was previously under pressure from the sellers.
