Floki (FLOKI), a meme coin created by fans of the Shiba Inu (SHIB) project, has experienced a 20% price drop in the last 24 hours. This sharp decline followed the reactivation of a previously dormant wallet.
Currently, FLOKI is trading at $0.00012. On-chain analysis suggests that the token could face further losses before a potential recovery.
Floki Idle Wallet Suddenly Comes Alive
Earlier today, Spot On Chain reported the reactivation of a wallet that had been dormant for two and a half years. According to findings from the on-chain analytics platform and BeInCrypto, the wallet is connected to the Floki team and is directly linked to the deployer.
Shortly after its reactivation, the wallet transferred 15.22 billion FLOKI tokens to Binance, valued at $2.27 million at the time of the transaction. Sending cryptocurrency to centralized exchanges often signals bearish intentions, so it was no surprise that FLOKI’s price plummeted just hours after the transfer.
The transactions suggest the move was likely aimed at profit-taking, as the addresses had held the tokens since the price was $0.000030 in 2022.
Read more: What Are Meme Coins?
However, the wallet is not the only entity offloading FLOKI. According to IntoTheBlock, the number of addresses holding between $100,000 and $10 million worth of FLOKI has decreased.
Typically, when this group of holders grows, it signals accumulation, often foreshadowing a price increase. Conversely, a decrease, as seen with FLOKI, suggests rising selling pressure.
As a result, FLOKI’s price risks further decline if large holders continue to avoid buying the token at its current market price.
FLOKI Price Prediction: The Meme Coin Might Slide Below $0.00010
From a technical perspective, FLOKI’s price could experience further decline, as indicated by the Balance of Power (BoP). The BoP is a technical indicator that measures the strength of buyers versus sellers in the market. A higher BoP reading reflects stronger buyer momentum.
However, on the daily FLOKI/USD chart, the BoP is currently down, signaling ongoing selling pressure. If this trend persists, FLOKI’s value could continue to drop, with a potential move toward $0.000096.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
Despite this, Scofield, a crypto trader on X, suggests that the meme coin’s price might see a significant bounce once the market stabilizes.
“When the current dip in FLOKI ends, I expect it to bounce back aggressively as it historically has, leaving many sidelined. Floki already boasts the strongest fundamentals of any memecoin, and instead of resting on its laurels, it continues to double down on fundamentals,” Scofield opined.
Disclaimer
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