NOIDA (CoinChapter.com)— Floki Inu, another memecoin from the canine-themed crypto token kennel, has attracted significant attention. Following the release of the recent US CPI data, which saw Bitcoin break above $65,000, traders are watching FLOKI price action to decide whether to buy the token or not.

Why Floki Inu Price Was Up

The Floki Inu team has proposed burning 15.25 billion FLOKI tokens worth nearly $2.8 million.

Historically, the Floki DAO has executed key burn-related votes, such as burning 190 billion tokens recovered from the Multichain bridge in February 2024 and 4.97 trillion tokens from the Floki cross-chain bridge in January 2023.

Additionally, a vote in July 2022 decided on burning excess tokens from a blacklisted wallet. Burning reduces a token’s supply, which usually leads to a price hike if the demand remains constant. As such, a burn event often serves as a bullish cue for a token.

The Floki Inu DAO passed the proposal with an overwhelming 99.84% majority.

Meanwhile, the rise of meme stocks like Gamestop has had a significant impact on the memecoin sector, including tokens like Floki Inu. Back in 2021, Gamestop’s stock price surged, driven by retail investors coordinating on platforms like Reddit.

Keith Gill, also known as ‘Roaring Kitty‘, was a central figure in the Gamestop price surge. After that, the trader took a hiatus from social media. As a central figure in the 2021 GameStop short squeeze, Gill’s return to social media has reignited enthusiasm among retail investors.

This phenomenon spilled over into the cryptocurrency market, where similar community efforts have propelled the value of meme coins. Investors seeking high-risk, high-reward opportunities have been drawn to memecoins, creating volatile but potentially lucrative investment environments.

The resulting spike in FLOKI’s price attracted investor interest. However, it is wise to remember that the price rally relied mostly on social media hype.

Despite the Floki Inu team’s efforts to establish the token’s utility and long-term viability, the fact remains that FLOKI is a memecoin that relies on social media hype. Furthermore, the Floki Inu token price has formed a bearish technical pattern.

FLOKI Price Face Bearish Triangle Risks

The Floki Inu token price has formed a bearish setup called the ‘descending triangle.‘

Market analysts predominantly consider the descending triangle a bearish continuation signal.

The configuration features a downward-sloping upper trendline, which gradually reduces the price action’s highs, and a flat lower trendline, which is a consistent support level the price finds difficult to break.

Moreover, the pattern suggests that selling pressure is intensifying and consistently overpowering the buyers, leading to successively weaker rallies. In this setup, the potential price target is typically gauged by the maximum height of the triangle at its widest point.

Hence, confirming the bearish pattern might result in the Floki Inu token dropping over 67% to reach the projected price target near $0.0000695.

The post Floki Inu Burns 15.2B Tokens— Should You Buy FLOKI? appeared first on CoinChapter.

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Filed under: Bitcoin - @ May 16, 2024 4:18 am