Market sentiment remains pessimistic, and on-chain activities heavily influence price movements. FLOKI Coin, an altcoin with significant investor confidence, is believed to see a sustained rise. The recent drop in Bitcoin prices has led to double-digit losses within the past 24 hours, driven by these on-chain activities. So, what’s next for FLOKI Coin?
Active Wallet Influence
FLOKI Coin is currently trading at $0.00012, and a previously inactive wallet has reactivated after two and a half years. Analysts from Spot On Chain suggest this wallet is likely linked to the FLOKI team. Recently, 15.22 billion FLOKI tokens, valued at $2.27 million, were transferred to Binance, usually a signal for an impending price drop as such transfers often signify selling intentions.
Investor Sentiment Decline
Tokens that were held at $0.000030 in 2022 appear to be moved for profit-taking, given the potential profit margin. This isn’t the sole factor driving the potential price drop. Many FLOKI Coin holders, who have been waiting for further price increases, might be losing patience. The number of addresses holding FLOKI valued between $100,000 and $10 million has decreased, indicating a lack of confidence among larger investors.
If this selling trend persists, FLOKI Coin prices could experience further declines. A mass sell-off by long-term profitable investors could also negatively impact the medium-term performance outlook.
Potential FLOKI Coin Price Movements
From a technical standpoint, the Balance of Power (BoP) indicator suggests FLOKI Coin may continue to decline. This metric measures the dominance of buyers over sellers. A high BoP value indicates strong buyer momentum, which supports price increases. Currently, a low BoP value points to continued downward pressure on the price.
If the current trend in selling pressure and on-chain decline indicators continue, FLOKI Coin’s price might drop to $0.000096. According to popular crypto analyst Scofield:
“When the current decline in FLOKI ends, I expect it to rebound aggressively, as it has historically, leaving many behind. Floki is already more famous than most meme coins and continues to strengthen its fundamentals despite this.”
Valuable Insights for Investors
Investors should consider the following:
- Monitor wallet activities linked to the FLOKI team for potential market signals.
- Evaluate the Balance of Power (BoP) indicator for buyer-seller dynamics.
- Observe changes in the number of large FLOKI holders for shifts in investor sentiment.
- Prepare for potential price drops to $0.000096 if selling pressure remains.
- Be aware of historical rebounds following significant declines in FLOKI Coin.
In conclusion, if the current adverse trends persist, FLOKI Coin may see a further decline. However, historical patterns and strong fundamentals could offer a promising rebound for patient investors.