Shiba Inu Rival FLOKI Faces 20% Correction: Is This a Bargain for Buyers?

• Despite Floki’s impressive performance, recent data indicates that whales, significant investors holding large amounts of Floki tokens, are engaging in profit-taking activities.
• Additionally, there’s speculation within the community that Floki could follow in the footsteps of Dogecoin, transitioning from a meme coin to a mainstream cryptocurrency.

Floki Inu (FLOKI) has had pretty solid growth recently amid the meme coin mania over the last month. However, the recent on-chain and technical indicators suggest that investors should be ready to brace for a steady 20% correction.

The Floki Inu price is displaying a bearish divergence in the one-hour time frame, resembling a pattern observed in early March. During that period, between March 1 and 4, FLOKI recorded higher highs while momentum indicators showed lower lows, indicating a divergence. This led to a 48% correction in the meme coin as momentum declined.

Following the correction, which breached the last key swing low at $0.000105 formed on March 2, a buy signal was generated. Subsequently, Floki Inu price surged nearly 80% in just 13 hours. As reported by Crypto News Flash, this surge came amid the recent supply burn proposal.

Given the current bearish divergence between Floki Inu price and momentum indicators, a similar scenario may unfold. Investors should anticipate another correction, with two key swing lows at $0.000245 and $0.000216. The first target is approximately 12% away, while the second is 22% away from the current price of $0.000278. In a bullish market scenario, a sweep of the second swing low could present a favorable buying opportunity.

Courtesy: FxStreet

However, if FLOKI records a daily candlestick close above the March 12 swing high of $0.000307, along with a notable spike in the Relative Strength Index (RSI) resulting in a higher high, it would invalidate the bullish thesis. In this scenario, FLOKI might endeavor a 14% rally, aiming to reach $0.000350.

Whales on Profit-Taking Mode

Despite Floki’s impressive performance, recent insights from on-chain data reveal an intriguing trend: whales are initiating profit-taking maneuvers. These prominent investors, who have amassed substantial amounts of Floki tokens, are now beginning to unstake their holdings and commence selling activities to secure profits. This cautious approach to the recent surge indicates that while investors harbor optimism regarding Floki’s prospects, they are also inclined to capitalize on the gains they have amassed.

One notable transaction that has garnered attention from market observers involves a smart whale identified as 0xf63. This whale deposited an astonishing 200.9 billion $FLOKI tokens, valued at $50.3 million, into Gate.io. Such a move not only underscores the considerable profit potential associated with Floki investments but also adds depth to market analysis. It suggests that while optimism surrounds Floki’s future trajectory, investors are also adopting a pragmatic stance, mindful of potential market fluctuations and volatility.

FLOKI Inu the Next Dogecoin

The recent surge in Floki’s price is fueling speculation about its potential to emulate the success of the renowned DOGE. Analysts and experienced investors are closely monitoring Floki’s movements, drawing comparisons to DOGE’s remarkable journey from meme coin to mainstream cryptocurrency, as per the Crypto News Flash report.

Within the community, there’s a rising belief that Floki’s recent price surge might signal its emergence as the next prominent memecoin in the current market cycle. With its distinctive branding and increasing popularity, Floki is attracting the interest of both seasoned traders and newcomers, sparking additional speculation about its future path.

This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

Source