- FLOKI’s popularity across social media platforms grew materially in the last 24 hours.
- The price of FLOKI witnessed an uptick, however, network growth continued to fall.
With Dogwifhat[WIF] taking up the spotlight in the memecoin sector, tokens such as Floki Inu[FLOKI] were left behind. However, as the hype around WIF has stabilized, the overall interest in FLOKI grew.
FLOKI regains popularity
According to LunarCrush’s data, sentiment around FLOKI rose significantly. Moreover, the overall social activity around FLOKI increased as well. In this regard, FLOKI outperformed WIF, DOGE and BONK and had claimed the top spot.
Source: Santiment
Due to these factors, there was a surge in the token’s price. In the last 24 hours, the price of FLOKI grew by 7.17% . Even though the social metrics favoured FLOKI, the memecoin wasn’t able to reverse its current trend.
Since testing the $0.00030927 levels on the 14th of March the price of FLOKI fell by 30.51%. During this period, the price of FLOKI showed multiple lower lows and lower highs, establishing a bearish trend.
FLOKI would need to surpass $0.0002558 levels to break the current bearish trend in hopes for a reversal. Moreover, the RSI (Relative Strength Index) for FLOKI had reached 65.14, suggesting slightly overbought levels.
This suggests that FLOKI’s price may have risen too quickly and could potentially be due for a correction in the near term.
Furthermore, the Chaikin Money Flow (CMF) had reached -0.01 levels suggesting weak buying pressure, potentially aligning with the ongoing downtrend.
Source: Trading View
Looking at the data
Another factor that could hinder FLOKI’s growth would be the declining network growth for the token. AMBCrypto’s analysis of Santiment’s data indicated that the network growth for FLOKI had plummeted over the last few days.
This meant that new addresses weren’t showing too much interest in the FLOKI token.
Moreover, the velocity of the FLOKI token had also fallen implying that the frequency at which FLOKI was trading at had declined.
This suggests that the recent surge in price could be caused by the accumulation of older holders who decided to buy more FLOKI.
Realistic or not, here’s FLOKI market cap in BTC‘s terms
Even though this kind of accumulation can help the price see green in the short term, new addresses are needed to help sustain this kind of rally.
Source: Santiment
Additionally, the MVRV ratio for FLOKI had declined despite the surge in price. This indicated that most holders were still in loss and may have to wait before they can sell their holdings for a profit.
Source: Santiment