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FLOKI price has surged by an impressive 140% within just one week, raising speculation about the revival of memecoins like DOGE and PEPE. This remarkable gain aligns with the recent introduction of its tokenization platform, TokenFi. However, the question on everyone’s mind is whether this rally can be sustained.
Bitcoin Boosts Memecoins
The soaring success of Bitcoin, reaching as high as $35,000 this week, has also benefited various memecoins. Among them, Floki (FLOKI) stands out, surpassing its competitors in terms of percentage gains.
FLOKI Price Up 140% Amidst Bitcoin ETF Enthusiasm and TokenFi Launch
As of October 27th, FLOKI has witnessed an astonishing 140% surge, reaching $0.00004261, marking its highest point in five months. The controversial marketing tactics of this memecoin have been paying off, gaining momentum after Grayscale Investments from New York filed for a new spot Bitcoin exchange-traded fund (ETF) on NYSE Arca.
FLOKI’s Impressive Tokenization Platform- TokenFi
In the last 24 hours, FLOKI’s gains have received a significant boost with the launch of its tokenization platform, TokenFi, alongside its native token, TOKEN. Notably, users can now stake their FLOKI holdings to receive TOKEN.
Read More: Binance Revenue Slump and Regulatory Hurdles as FTX Declares Bankruptcy
The Future of FLOKI Price
FLOKI’s ongoing price rally has pushed its daily relative strength (RSI) to its most overbought level since January 2023. An overbought RSI typically foreshadows a correction period, raising the possibility of a downside reaction in the coming days or weeks.
Potential Price Scenarios
Should FLOKI’s rally stall, the FLOKI/USD pair may drop towards its 0.5 Fibonacci retracement line near $0.00003548 in October 2023. A decisive close below this level could result in a 20% price decline to the 0.236 Fib line near $0.00003069 in November 2023. On the contrary, the price could break above the current resistance level of $0.00004027 and aim for $0.00004078.
Awakening of Memecoins like DOGE and SHIB
Most memecoins have underperformed compared to leading cryptocurrencies like Bitcoin in 2023, with some even experiencing year-to-date (YTD) losses.
For instance, DOGE has rallied over 30% since the Grayscale Bitcoin ETF announcement on October 19. Nevertheless, its YTD returns as of October 27 are a mere 1.3%, compared to BTC’s remarkable 105% gains during the same period.
FLOKI’s Success Story
One memecoin that debuted in April 2023 has risen over 500%. FLOKI, on the other hand, boasts YTD returns of approximately 435% as of October 27.
The Uncertain Path of Memecoins Speculators flock to memecoins seeking high returns in a short time, typically when risk sentiment in the crypto space is strong. However, memecoins can also plummet dramatically when risk sentiment exhausts.
DOGE, for example, crashed 90% from its peak in the 2020 to 2021 bull market. The future of memecoins hinges largely on the ETF update and its potential impact on BTC’s price.
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Disclaimer:
Please note that this article serves solely for informational purposes. As such, Gold Futures it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
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