The price of FLOKI will increase. Will memecoins like DOGE, PEPE finally wake up? FLOKI’s gains coincide with the launch of its tokenization platform, TokenFi, but is this rally sustainable? To receive the latest price analysis and articles about digital currencies, stay with the digital currency site.
Bitcoin’s rally to $35,000 this week also boosted a number of memecoins, including Floki (FLOKI), which beat its main rivals in percentage gains.
Since October 27th, FLOKI has risen over 140% to $0.00004261, a five-month high. The memecoin, known for its controversial marketing tactics, surged after New York-based Grayscale filed for investment for a new bitcoin exchange-traded fund (ETF) on NYSE Arca.
FLOKI’s gains were boosted by the October 27 launch of its tokenization platform TokenFi. Notably, users will be allowed to share their FLOKI assets to receive.
FLOKI’s continued price gains have pushed its daily relative strength (RSI) to its highest buy level since January 2023. An overbought RSI is typically before a correction period. In the case of FLOKI, its previous period with overbought RSIs was accompanied by sharp price declines, thus raising the possibility of a similar bearish reaction in the coming days or weeks. Conversely, the price may break through the current resistance level of $0.00004027 to move towards $0.00004078.
Almost all cryptocurrencies have underperformed cryptocurrencies like Bitcoin so far in 2023, and some have even experienced year-to-date (YTD) losses.
For example, Dogecoin’s top dog Memecoin is up more than 30% since the Grayscale Bitcoin ETF was announced on October 19. Similarly, Shiba Inu is down 2.75% YTD despite rising nearly 25% over the past seven days.
The only exceptions are Pepecoin. Memecoin was released in April 2023 and has grown by more than 500% since then. Then there’s FLOKI, which has a YTD return of around 435% through October 27.
Speculators hunt memecoins for maximum returns in minimum time, usually when risk sentiment is strong in the crypto space. For example, the 2020-2021 crypto bull market saw Dogecoin gain 67,475% versus Bitcoin’s 1,700% gain.
However, Mimcoins can drop sharply when risk sentiment wears off. For example, DOGE fell 90% in its bull market from 2020 to 2021. Therefore, whether or not memecoins continue to rally in the future will largely depend on the ETF update and its impact on the price of Bitcoin.