In a notable development within the cryptocurrency market, a pseudonymous analyst known as Rekt Capital pointed out that the meme-based cryptocurrency FLOKI could be on the brink of a significant price increase.
Rekt Capital, sharing insights on the platform X, highlighted, “FLOKI is in the process of retesting its final major resistance as new support (black).
Successful retest would send #FLOKI to new highs. Needs to continue to hold here.
Retest is in progress.” This statement sets the stage for FLOKI’s potential market performance.
The analysis included details on FLOKI facing two pivotal resistance levels at $0.000021 and $0.0000625. In the realm of technical analysis, resistance levels are thresholds where the sell-off pressure surpasses buying interest, thus capping the asset’s price increase.
Breaking through a resistance level could transform it into a support level, indicating a strong buying interest that prevents further price declines.
Rekt Capital suggests that FLOKI has surpassed a significant price challenge and is now testing this boundary as a support level, potentially solidifying its position and preventing further declines.
The spotlight on FLOKI also comes at a time when the coin has engaged in significant token burning activities, effectively reducing its circulating supply.
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Recently, over $1 million worth of FLOKI tokens were burned, followed by another substantial burn amounting to $3.2 million.
This reduction in supply has been further supported by the FlokiFi Locker, a DeFi protocol that purchases and burns FLOKI tokens, aiding in the scarcity of the asset.
Additionally, data from Santiment, an analytics platform, indicates an increase in social dominance for Floki, hinting at a growing interest and potentially positive market sentiment towards the coin.
Another cryptocurrency analyst, Inmortal, also conveyed optimism about FLOKI’s future, drawing parallels to another meme coin’s success. Inmortal stated on X, “PEPE pumped.
FLOKI next. Muscle memory, contagion. Call it what you want, but it works.”
This sentiment underscores a broader belief in the meme coin’s market dynamics and potential for substantial gains.
At the time of the report, FLOKI’s trading value stood at $0.0002771, marking a 6.46% increase over the preceding 24 hours, signaling positive market movement for the meme cryptocurrency.
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