Floki Inu (FLOKI) recently experienced a significant drop in price, with a decrease of nearly 20% on a daily scale. The meme coin is currently trading around $0.0001272, and its market capitalization has fallen to $1.23 billion. This decline in value has caused Floki Inu to slip from its position among the top 5 meme coins, now ranking as the sixth-largest. Bonk Inu (BONK) has overtaken Floki Inu to claim the fifth spot, with a market cap of $1.25 billion.
Spot On Chain, a data analytics platform, revealed that Floki Inu’s price drop coincided with a significant deposit of over 15 billion tokens (almost $2.3 million) to Binance from a previously inactive wallet. These tokens were accumulated back in early 2022 when the price of Floki Inu was much lower. If the trader behind this wallet sold all the FLOKI tokens upon depositing them, they would have made a profit of over $1.8 million. Such large sell positions can increase the circulating supply of an asset, potentially leading to a price decline. This, coupled with possible panic among investors, can result in additional selling pressure and further setbacks for the coin.
Despite the substantial drop in price, some crypto analysts remain optimistic about Floki Inu’s future. Scofield, a prominent analyst, believes that the meme coin has strong fundamentals and is poised for a significant rally. They predict an aggressive rebound in price that could catch many investors off guard. Jelle, another analyst, pointed out that Floki Inu’s price has been hovering near a key resistance level of $0.00012789. They suggest that breaking above this level could trigger a rally of almost 60%.
While Floki Inu has faced a notable price drop and lost its spot among the top meme coins, there is optimism among analysts regarding its future potential. The crypto market is known for its volatility, and a single event like a large sell position can have a significant impact on prices. Investors should closely monitor developments surrounding Floki Inu and assess the opinions of analysts before making any investment decisions.