The Floki token experienced a sharp decline on Friday, Aug. 30, marking it as the worst-performing meme coin in the cryptocurrency market. The sixth-largest meme coin fell by over 20%, hitting a low of $0.00012, a level not seen since Aug. 21. This represents a 23% drop from its highest point earlier in the week and a 64% decline from its peak this year.

Other meme coins, including Bonk, Popcat, and Mog Coin (MOG), also saw significant declines of over 10% on the same day.

Key Factors Behind the Sell-Off

The primary catalyst for Floki’s sell-off was the movement of 15.2 billion tokens, valued at $2.27 million, by a dormant account to Binance. Such transfers to exchanges often precede heavy selling activity, triggering stop losses from other holders who join the selling spree.

The Floki price dropped by 17.7% in the past 24 hours.

A wallet associated with @RealFlokiInu returned after 2.5 years of inactivity and deposited 15.22 billion Floki tokens ($2.27 million) to Binance just before the price plummeted.

Additional data indicates that more significant holders continued to move their Floki tokens out. Another large holder transferred tokens worth $629,000 to MEXC on Friday. Net outflows of Floki from both centralized and decentralized exchanges persisted throughout the week. Net outflows from CEX exchanges fell to their lowest point since Aug. 21, while those from DEXes increased to the highest level in over a week.

Market Context and Floki’s Position

Floki’s price action also mirrored the broader weakness in the cryptocurrency industry, with Bitcoin remaining below $60,000. The total market capitalization of all cryptocurrencies dropped from over $2.3 trillion earlier in the week to $2.09 trillion.

Launched in 2021, Floki has grown into a significant player in the meme coin sector, boasting a market cap of over $1.27 billion. This growth is attributed to the developers’ efforts to transition it from a mere meme coin to an active ecosystem. They introduced TokenFi, a platform for tokenizing real-world assets, Floki Locker, a DeFi network with over $31 million in assets, and Valhala, a play-to-earn NFT metaverse. The developers have announced that Valhalla will enter its next growth phase, supported by its $30 million treasury.

Technical Analysis and Future Outlook

Technically, Floki maintains weak indicators. The token formed a death cross pattern on Aug. 27, when the 200-day and 50-day moving averages crossed each other. The Percentage Price Oscillator (PPO), a unique form of the MACD, remains below the neutral point.

Given these technical indicators, Floki may continue to decline as sellers target the next support level at $0.0000954, which is 25% below Friday’s level.

Stay updated with the latest cryptocurrency news and insights by exploring more articles on Global Crypto News.

Post Views: 5