Recently, Floki Inu (FLOKI) experienced a significant drop of nearly 20%, causing it to lose its place among the top 5 meme coins. This decline resulted in its market capitalization falling to $1.23 billion, dropping it to the sixth position. The price of FLOKI is currently trading at around $0.0001272. Bonk Inu (BONK) managed to surpass Floki Inu and claim the fifth spot with a market cap of $1.25 billion.
Effects of a Large Token Deposit
An interesting development that coincided with Floki Inu’s decline was a large token deposit of over 15 billion tokens (equivalent to almost $2.3 million) to Binance. This wallet had been inactive for two and a half years, accumulating the tokens when the price of FLOKI was much higher. If the tokens were sold upon depositing, the trader’s profit would have been substantial. However, this action resulted in an increase in the circulating supply of FLOKI, potentially leading to a price decline due to oversupply and reduced demand.
Analysts’ Optimism Despite Price Drop
Despite the price drop, some crypto analysts remain optimistic about the prospects of Floki Inu. Analyst X, known as Scofield, expressed confidence in a potential rally for FLOKI. They emphasized the strong fundamentals of the token and predicted a bullish run in the near future. Another analyst, Jelle, highlighted the token’s struggle to surpass a major resistance level of $0.00012789. They believe that breaking above this level could trigger a significant rally of almost 60%.
The recent decline in Floki Inu’s price and market position has raised concerns among investors and analysts. The large token deposit and subsequent increase in circulating supply have put downward pressure on the token’s price. However, some analysts remain optimistic about a potential rally if FLOKI manages to surpass key resistance levels. It is essential for investors to closely monitor the price movements and market developments of Floki Inu to make informed decisions about their investments in meme coins.