- FLOKI’s popularity on social media platforms has grown significantly over the past 24 hours.
- The price of FLOKI witnessed an increase, but the network growth continued to decline.
With dog hat[WIF] In the spotlight in the memecoin sector, tokens like Floki Inu[FLOKI] were left behind. However, as the hype around WIF stabilized, general interest in FLOKI grew.
FLOKI regains popularity
According to LunarCrush data, sentiment around FLOKI rose significantly. In addition, general social activity around FLOKI also increased. In this regard, FLOKI outperformed WIF, DOGE and BONK and had claimed the first place.
Source: Santiment
As a result of these factors, there was an increase in the price of the token. In the last 24 hours, the price of FLOKI has increased by 7.17%. Although the social metrics were in FLOKI’s favor, the memecoin failed to reverse the current trend.
Since testing the $0.00030927 levels on March 14, FLOKI’s price has fallen 30.51%. During this period, FLOKI’s price showed multiple lower lows and lower highs, creating a bearish trend.
FLOKI would need to surpass the $0.0002558 level to break the current bearish trend hoping for a reversal. Furthermore, the RSI (Relative Strength Index) for FLOKI had reached 65.14, indicating a slightly overbought level.
This suggests that FLOKI’s price may have risen too quickly and may undergo a correction in the near term.
Moreover, the Chaikin Money Flow (CMF) had reached a level of -0.01, indicating weak buying pressure, which may align 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 network growth for FLOKI had plummeted in recent days.
This meant that new addresses did not show too much interest in the FLOKI token.
Moreover, the velocity of the FLOKI token had also decreased, implying that the frequency with which FLOKI traded had decreased.
This suggests that the recent price increase could be caused by the build-up of older holders who decided to buy more FLOKI.
Realistic or not, here is FLOKI’s market cap in BTC terms
Even though this kind of accumulation can help keep the price greener in the short term, new addresses are needed to support this kind of rally.
Source: Santiment
Moreover, the MVRV ratio for FLOKI had decreased despite the price increase. This indicated that most holders were still making losses and may have to wait before they could sell their holdings for a profit.
Source: Santiment