- FLOKI’s price surged significantly over the past week as interest in the token grew.
- Network growth declined, indicating a waning interest from new users.
Floki Inu [FLOKI] has been one of the memecoins that has been competing for the top spot for quite some time.
FLOKI dominates the market
Despite FLOKI’s attempts to grow, new and popular entrants have continued to take away market share from the FLOKI token. However, the tides for FLOKI changed over the last week.
According to CoinMarketCap’s data, FLOKI witnessed a 21.75% surge in price over the last seven days. It was the third-highest cryptocurrency that appreciated so much during this duration.
Source: CoinMarketCap
Since the beginning of May, the price movement of FLOKI has largely been positive. It has shown multiple signs of higher highs and higher lows, indicative of an upcoming bullish trend.
If FLOKI manages to test the $0.00023076 levels again, it could surge past the resistance and aim for the $0.00025780 level in the future.
Despite the surge in FLOKI’s price, the CMF (Chaikin Money Flow) for the FLOKI token had fallen significantly to -0.12 levels. This indicated that the money flowing into FLOKI had fallen significantly.
The RSI (Relative Strength Index) for FLOKI had declined materially as well, implying that the bullish momentum around the token had taken a hit.
Source: Trading View
Despite the surge in price, it was seen that it was mostly long positions that were getting liquidated. This could be attributed to traders taking highly leveraged bets on FLOKI.
Source: Coinglass
Due to this, the sentiment of traders turned negative. According to Coinglass’ data, the number of short positions taken against FLOKI had surged in the last few days.
This indicated that there was a rise in bearish sentiment, and traders were expecting FLOKI’s price to drop.
Source: coinglass
Even though the price of FLOKI had surged, the Network Growth had declined significantly, suggesting that the number of new addresses using FLOKI had fallen.
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A lack of interest from new addresses indicated that the recent price surge of FLOKI was caused by existing holders accumulating new coins.
Even though this might help the price in the short term, new addresses may be required for long-term sustainable growth.
Source: Santiment