FLOKI price rises 140% in a week – will memecoins like DOGE, PEPE finally wake up?
This week, Bitcoin (BTC) rose to $35,000 and launched several memecoins, including FLOKI, which beat its top rivals by a percentage point.
FLOKI's price surged 140% amid Bitcoin ETF hype, TokenFi launch.
Since October 27, FLOKI has risen over 140% to $0.00004261, the highest level in five months. Memecoin, known for its controversial trading strategies, has started to rally after New York-based Greyscale Investments filed for a new Bitcoin exchange-traded fund (ETF) on the NYSE Arca, as seen below.
Looking at the past 24 hours, FLOKI's profits took an additional boost from the launch of its token platform, TokenFi, with its own native token, on October 27. Token
$FLOKI launches staking and new token platform to target $16 trillion token industry. ️️️
Their new token is called TokenFi with the symbol $TOKEN! ️️️️️️
Brilliant idea and execution. No wonder #Floki from $DOGE, $SHIB,… https://t.co/n3sjXYdnJR
— Shelby (@CryptoNewton) October 27, 2023
Where is FLOKI's price heading next?
FLOKI's ongoing price rally since January 2023 has seen its daily Relative Strength Index (RSI) become overbought.
An overbought RSI typically precedes a correction period. In the case of FLOKI, the strong bearish trend of the previously overbought RSI has raised the possibility of a similar negative reaction in the coming days or weeks.
If FLOKI's rally stops, the FLOKI/USD pair risks falling to the 0.5 Fibonacci retracement line near $0.00003548 in October 2023. A critical close below the level could fall to the 0.236 Fib line from the November 0.00002062032022 price. Current price levels.
Conversely, the price may break above the $0.00004027 resistance level to track a run towards $0.00004078.
Are memecoins like DOGE, SHIB enabled?
Almost all memecoins will underperform high-profile cryptocurrencies like Bitcoin in 2023, with some even reversing year-to-date (YTD) losses.
For example, top memecoin Dogecoin (DOGE) has rallied more than 30% since the announcement of the Greyscale Bitcoin ETF on October 19. However, the YTD return since October 27 is only 1.3%, compared to BTC's 105% gain in the same period.
Similarly, Shiba Inu ( SHIB ) has rallied nearly 25% over the past seven days, but is down 2.75% YTD.
Exceptions are Pepecoin (PEPE). A memecoin that launched in April 2023 and has increased over 500%. Then there's FLOKI, whose YTD return since Oct. 27 is around 435%.
Related: Is Bitcoin Overheated? Some believe that the answer is hidden in PEPE
Spectators appreciate memecoins for high returns in a short period of time, especially when risk sentiment is strong in the crypto space. For example, in the 2020-2021 crypto bull market, Dogecoin rose up to 67,475% compared to Bitcoin's 1,700% gain.
However, memecoins can drop significantly when sentiment runs out.
DOGE, for example, has fallen 90% from the 2020-2021 bull market high. Therefore, whether memecoins will continue their rally in the future or not will largely depend on the ETF update and its impact on the BTC price.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
