Shiba Inu competitor FLOKI was one of the best performers this year and continues to maintain a high level in the market. Its price will more than double by 2024, leading to an influx of new investments in the meme coin. However, with investors throwing money at FLOKI, one analyst expects this surge to be short-lived, predicting a massive price crash for the altcoin.
FLOKI ready for a rally and then a dump
Crypto analyst iMoneyTeam has predicted a dump for the FLOKI price that could erase all the meme coin’s gains in recent months. The analysis, which was posted on the TradingView platform, tracks FLOKI’s movement over the past few months in an attempt to predict where the price will go next. As the crypto analyst explains, the price has reached a “bearish iCH” in the internal structure, which has created an “internal pullback” as shown in the chart below.
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This is evident from the price drop that has rocked the meme coin so far in the month of June. However, where in this situation a recovery is usually expected for an asset and a continuation of the rally, the crypto analyst believes that this is a preparation for a further pullback.
For now, however, the analyst notes that there is still a lot of bullish pressure on the meme coin. This happens even when the price has broken a trendline, which would normally be bearish. But in this case, the bullish pressure could help the price maintain its position. From here, there could be a price recovery towards new record highs. However, after this the real problem for the cryptocurrency begins.
Multiple purposes for the meme coin
According to iMoneyTeam’s prediction, there will be a price increase before the FLOKI price will crash. The chart shows a recovery as high as $0.00044, which is a nearly 60% increase in the meme coin’s price at the time of writing. After this, however, the crypto analyst expects the Shiba Inu competitor to reach a supply zone, which will begin its decline.
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Once the price starts to fall, the analyst expects the price to fall to $0.00006. Now, from the current price of $0.00018, this would represent an 80% price drop. However, if the price hits a new all-time high of $0.00044 as the analyst predicts before falling, then a crash to $0.00006 would mean an 86% drop.
In terms of when this could happen, the crypto analyst does not provide a timeline of events. However, the chart shows that the price would reach a demand zone around $0.00006, which could indicate that this would be the bottom before the crash.
Featured image from Asia Crypto Today, chart from Tradingview.com