Floki crashes when sleeping whale moves 15B tokens to Binance
FLOKI is down 17% as a sleeping whale moves 15.22B tokens to Binance. After 2.5 years, the resurgence of the whale caused panic and a huge sell-off. FLOKI's weak technicals suggest further downside amid broader crypto market struggles.
FLOKI, one of the biggest meme coins, saw its value drop by more than 17%, hitting a low of $0.00012658, the weakest point since August 21st.
This decline represents a decrease of 64% from the peak this year, which shows the volatile nature of the Mem coin market.
As Bitcoin struggles to stay above the $60,000 mark, Floki's price decline coincides with a broader bearish trend in the cryptocurrency market. At press time, the price of BTC was $59,588.11, a decrease of 2.47 last week, corresponding to the fall in the global crypto market capitalization, which dropped to $2.09 trillion from more than $2.3 trillion at the beginning of the week.
Dormant Flokey whale wakes up again after 2.5 years
The main reason for this sharp decline is the sudden activity of a dormant whale account linked to the group behind Floki. After 2.5 years of inactivity, this account has moved 15.22 billion FLOKI tokens worth $2.27 million to Binance.
The value of $FLOKI is 🔻 17.7% in the last 24 hours.
A wallet linked to @RealFlokiInu is back after a 2.5 year hibernation and deposited $15.22B $FLOKI ($2.27M) into #Binance 9 hours ago, before the price crash.
These $FLOKI were released from the Floki installer to this… pic.twitter.com/9eDNqy3Mhr
— Spot On Chain (@spotonchain) August 30, 2024
This dormant account received the tokens from Floki deployer at the beginning of 2022 and the token price was only $0.0000307.
The transfer, which took place nine hours before the price plunge, sent shockwaves through investors, resulting in massive selling activity and massive inflows from both centralized and decentralized exchanges.
Data from Spotonchain showed that the net flow from FLOKI's centralized exchanges fell to the lowest level since August 21, while the flow from decentralized exchanges reached a one-week high.
Despite recent struggles, Floki remains a significant player in the meme coin space, with a market cap of over $1.27 billion. Its developers are working to transition Floki from a meme coin to an active ecosystem by launching initiatives such as TokenFi, Floki Locker, and the Valhalla NFT metaverse.
However, weak technical indicators, including a death cross pattern and a negative percentage price oscillator, suggest that further declines are possible for Mem Coin in the near term.
