FLOKI surges 140% in one week — Are memecoins such as DOGE and PEPE finally coming to life?
The recent surge of Bitcoin (BTC) to as high as $35,000 this week has also propelled several memecoins, including Floki (FLOKI), which has outperformed its main competitors in terms of percentage gains.
FLOKI price rises 140% amid Bitcoin ETF excitement, TokenFi launch
As of October 27, FLOKI had experienced a remarkable increase of over 140%, reaching $0.00004261, marking its highest point in five months. This memecoin, recognized for its provocative marketing strategies, began to climb following the news that Grayscale Investments, based in New York, submitted an application for a new spot Bitcoin exchange-traded fund (ETF) on NYSE Arca, as illustrated below.
In the last 24 hours, FLOKI’s gains received an extra boost from the debut of its tokenization platform, TokenFi, along with its native token, TOKEN, launched on October 27. Importantly, users will have the opportunity to stake their FLOKI assets to earn TOKEN.
$FLOKI is unveiling staking and a new tokenization platform aimed at the $16 trillion tokenization market today! ️️️️
The new token is called TokenFi and has the $TOKEN ticker! ️️️️️️
An excellent concept and execution. It’s no surprise #Floki is outpacing $DOGE, $SHIB,… https://t.co/n3sjXYdnJR— Shelby (@CryptoNewton) October 27, 2023
What’s next for FLOKI’s price?
The current price upswing of FLOKI has elevated its daily relative strength index (RSI) to its most overbought status since January 2023.
An overbought RSI often indicates an approaching correction period. In FLOKI’s case, previous instances of overbought RSI have resulted in significant price declines, thereby increasing the likelihood of a similar downward reaction in the upcoming days or weeks.
If FLOKI’s ascent falters, the FLOKI/USD pair could risk falling towards the 0.5 Fibonacci retracement level around $0.00003548 in October 2023. A decisive close beneath this point may lead to a plunge towards the 0.236 Fib line around $0.00003069 in November 2023, representing a 20% drop from current price levels.
On the other hand, should the price break above the present resistance level of $0.00004027, it may aim for a rally towards $0.00004078.
Are memecoins like DOGE and SHIB starting to rally?
Most memecoins have lagged behind leading cryptocurrencies such as Bitcoin throughout 2023, with some even experiencing year-to-date (YTD) losses.
For example, the leading memecoin Dogecoin (DOGE) has gained over 30% since the Grayscale Bitcoin ETF announcement on October 19. However, its YTD returns as of October 27 stand at only 1.3%, compared to BTC’s impressive 105% increase over the same timeframe.
Similarly, Shiba Inu (SHIB) is down 2.75% YTD despite a nearly 25% increase in the last week.
The exceptions are Pepecoin (PEPE), a memecoin that launched in April 2023 and has surged over 500% since. Additionally, FLOKI boasts YTD returns of approximately 435% as of October 27.
Related: Is Bitcoin overheated? Some believe the answer is hiding in PEPE
Speculators seek out memecoins for maximum returns in minimal time, particularly when risk sentiment is strong across the crypto landscape. For instance, the crypto bull market from 2020 to 2021 saw Dogecoin soaring by as much as 67,475%, in contrast to Bitcoin’s 1,700% gains.
Nonetheless, memecoins can also experience significant declines when risk sentiment wanes.
For instance, DOGE has plummeted 90% from its peak during the 2020-2021 bull market. Therefore, whether memecoins will maintain their upward trend in the future largely hinges on the ETF news and its effect on Bitcoin’s price.
This article does not contain investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making a choice.
