Floki Inu (FLOKI) recently experienced a significant decline of nearly 20%, causing it to lose its position among the top 5 meme coins. This drop led to the token’s price plummeting to approximately $0.0001272, marking a substantial decrease in its market capitalization, which now stands at $1.23 billion. Bonk Inu (BONK) managed to surpass Floki Inu and claim the fifth position with a market cap of $1.25 billion.
One notable event that occurred prior to the decline was a wallet associated with Floki Inu depositing over 15 billion tokens, equivalent to almost $2.3 million, to Binance. This address had been inactive for two and a half years, accumulating tokens when the price was significantly lower at $0.0000307. If all the FLOKI tokens were sold upon depositing, the trader would have made a profit exceeding $1.8 million.
Large sell positions such as this can result in an increase in the circulating supply of the asset, potentially leading to a price decrease, especially if demand remains stagnant or decreases. Additionally, such actions can instigate panic among investors, triggering further selling pressure and bringing more challenges for bullish investors.
Despite the substantial drop in Floki Inu’s price, some crypto analysts remain optimistic about a potential rally. For instance, a user named Scofield expressed confidence in an aggressive rebound for the asset’s price, suggesting that it may catch many unsuspecting market participants off guard. They emphasized the solid fundamentals of Floki Inu compared to other meme coins and maintained a strong belief in its potential to dominate the current market cycle.
Another analyst, Jelle, pointed out that the token’s price has been consolidating around a critical resistance level of $0.00012789 over the past week. They argued that a breakout above this level could trigger a rally of nearly 60%, indicating further potential upside for the token.
The recent developments surrounding Floki Inu highlight the volatile nature of the cryptocurrency market. While the token faced a significant price decline and lost its position among the top meme coins, some analysts see a potential for a price rally if certain resistance levels are breached. It is crucial for investors to carefully monitor market trends and analyst predictions to make informed decisions in such dynamic market conditions.