FLOKI Price Up 140% Amid Bitcoin ETF Hype and TokenFi Launch
As of October 27, FLOKI had surged more than 140% to $0.00004261, its highest level in five months. The memecoin, known for its controversial marketing tacticsrecovered after New York-based Grayscale Investments filed a new Locate the Bitcoin exchange-traded fund (ETF) on NYSE Arca as shown below.
Over the past 24 hours, FLOKI’s gains received additional momentum from the launch of its tokenization platform, TokenFi, with its own native token, TOKEN, on October 27. Users will notably be authorized to stake their FLOKI assets to receive TOKEN.
$FLOKI Launches Staking and New Tokenization Platform Today to Target the $16 Trillion Tokenization Industry! ️️️️
Their new token is called TokenFi with the $TOKEN teleprinter! ️️️️️️
– Shelby (@CryptoNewton) October 27, 2023
Where does FLOKI price go next?
FLOKI’s continued price rise has brought its daily relative strength (RSI) to its highest overbought level since January 2023.
An overbought RSI usually precedes a correction period. In FLOKI’s case, its prior stint with overbought RSIs followed sharp price declines, increasing the possibility of a similar downward reaction in the coming days or weeks.
If FLOKI’s rally stalls, then the FLOKI/USD pair risks falling towards its 0.5 Fibonacci retracement line near $0.00003548 in October 2023. A decisive close below this level could cause a fall the price towards the 0.236 Fibonacci line near $0.00003069 in November 2023, down 20% from current price levels.
Conversely, the price could break above the current resistance level of $0.00004027 to continue an upward move towards $0.00004078.
Are memecoins like DOGE, SHIB waking up?
Almost all memecoins have underperformed leading cryptocurrencies like Bitcoin so far in 2023, with some even posting year-to-date (YTD) losses.
For example, the best memecoin Dogecoin (DOGE) has increased by more than 30% since the Grayscale Bitcoin ETF was announced on October 19. Still, its returns since October 27 are just 1.3%, compared to BTC’s 105% gains over the same period.
Likewise, Shiba Inu (SHIB) is down 2.75% year-to-date despite rising nearly 25% over the past seven days.
The only exceptions are Pepecoin (PEPE). A memecoin that debuted in April 2023 and has grown over 500% since then. Then there is FLOKI, whose cumulative returns are around 435% as of October 27.
Speculators seek out memecoins to achieve maximum return in the least amount of time, usually when risk sentiment is high in the crypto space. For example, the 2020 to 2021 crypto bull market saw Dogecoin up 67,475% against Bitcoin’s 1,700% gains.
Nonetheless, memecoins can fall just as drastically when risk sentiment runs out.
DOGE, for example, crashed 90% from its 2020 to 2021 bull market peak. Hence, whether or not memecoins will continue their rally in the future largely depends on ETF update and its impact on the price of BTC.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.