🌎 Floki Forms Bearish Death Cross Pattern

Floki Price Analysis: Bearish Patterns Indicate Potential Downside

Floki, a meme coin inspired by Elon Musk’s pet dog, has experienced a sharp decline in January, forming a death cross pattern that may indicate further downside in February. The cryptocurrency dropped to a low of $0.0001135, its lowest level since August last year, representing a decline of over 53% from its highest level in November.

Market Performance and Coin Burns

Floki’s decline is consistent with the performance of other meme coins, such as Dogecoin, Shiba Inu, and Pepe. In January, the cryptocurrency incinerated more than 5.8 trillion coins, with a total of 2.46 billion tokens worth $330,000 burned in the last three months. Since its inception in 2021, Floki has burned 5.87 trillion coins, leaving 4.1 trillion in circulation.

These coin burns occur when tokens are moved into an inaccessible address, aiming to reduce the number of coins in circulation and increase their value.

Ecosystem News and Whale Activity

Despite the decline, Floki has experienced some positive ecosystem news. The token was added to Coinbase, making it available to residents in New York. Additionally, two significant Floki whales continued to buy the dip as the coin fell, with the second-biggest holder acquiring 214 million tokens and another acquiring 253 million.

Upcoming Valhalla Launch

The upcoming launch of Valhalla, a play-to-earn game with a treasury worth over $43 million, is expected to be a key price catalyst for Floki. Valhalla aims to increase the use of Floki as it transitions from a meme coin to a utility coin.

Technical Analysis

The daily chart shows that the Floki price formed a double-top pattern at $0.0002840 in November and December, a highly bearish pattern. Additionally, the death cross pattern, which occurred when the 200-day and 50-day moving averages crossed each other, indicates potential downside. The formation of lower lows and lower highs further confirms this bearish trend.

Key support is at $0.0001135, and a crash below this level will confirm further downside.

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