Floki Outpaces Rival Memecoins Amid Bitcoin Surge; Future Tied to ETF Developments
Summary:
This article discusses the recent growth of the memecoin Floki (FLOKI), buoyed by a surge in Bitcoin (BTC) prices and the launch of FLOKI's own tokenization platform, TokenFi. The value of FLOKI rose over 140% by Oct. 27, outperforming rival memecoins. Users can invest their FLOKI holdings to receive TOKEN, the platform's native coin. However, an overbought relative strength indicator (RSI) could signal a potential price correction in the near future. Meanwhile, most other memecoins lag behind major cryptocurrencies like Bitcoin, despite recent gains. The article states that the future of memecoins depends heavily on ETF developments and its effect on Bitcoin prices.
This week's surge in Bitcoin (BTC), peaking at $35,000, has positively influenced several memecoins, with Floki (FLOKI) outpacing its competitors in terms of percentage growth. By Oct. 27, FLOKI's value soared over 140% to reach $0.00004261, marking a five-month high. The memecoin, notorious for its bold advertising methods, saw its value increase following Grayscale Investments' filing for a new Bitcoin ETF on NYSE Arca.
The launch of FLOKI's tokenization platform, TokenFi, on Oct. 27, further accelerated the coin's growth. Users have the opportunity to invest their FLOKI holdings to receive TOKEN, the platform's native token.
FLOKI's current growth surge has led to its daily relative strength indicator (RSI) reaching its highest level since January 2023. Traditionally, an overbought RSI indicates an approaching price adjustment period. A potential drop in value in the coming weeks may mirror previous downturns preceded by oversubscribed RSI levels.
Looking ahead, should FLOKI's growth dwindle, it risks plummetting to the 0.5 Fibonacci retracement line near $0.00003548 by Oct. 2023. A substantial drop below this level could further reduce the price to the 0.236 Fibonacci line at around $0.00003069 by November 2023, a 20% drop from current valuations. Alternatively, should the price surpass the existing resistance level of $0.00004027, it could rise to $0.00004078.
Most memecoins have been outdone by leading cryptocurrencies like Bitcoin in 2023. For instance, Dogecoin (DOGE), the top memecoin, saw a 30% increase after the Grayscale Bitcoin ETF announcement on Oct. 19. However, its YTD returns are a mere 1.3% compared to a 105% gain for BTC.
Meanwhile, Shiba Inu (SHIB) is down 2.75% YTD despite a near 25% increase over the past week. Exceptions like Pepecoin (PEPE), which debuted in April 2023 and has risen over 500%, and FLOKI, with YTD returns around 435%, stand out.
Memecoin speculators anticipate substantial returns in short periods, particularly when the crypto landscape is robust. For instance, the 2020-2021 crypto bull market witnessed Dogecoin soaring to 67,475%, outdoing Bitcoin's 1,700% gain.
However, the same memecoins may witness steep declines when the environment shifts. DOGE, for example, plunged 90% from its 2020-2021 bull market peak. Thus, the future of memecoins hinges on ETF developments and its effect on Bitcoin's price.
This report does not serve as an investment guide or recommend any particular trading strategies. Every investment or trading activity bears inherent risk. Readers should conduct thorough research prior to decision-making.
Published At
10/27/2023 12:19:10 PM
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