Bitcoin’s (BTC) rise to $35,000 this week has also boosted a number of meme coins, including Floki (FLOKI), which has outperformed major rivals.
Bitcoin ETF hype, TokenFi launched, FLOKI price rose 140%
As of October 27, FLOKI has surged more than 140% to $0.00004261, its highest level in five months. The memecoin, known for its controversial marketing tactics, is starting to rise after New York-based Grayscale Investments filed for a new spot Bitcoin exchange-traded fund (ETF) on NYSE Arca, as seen below.
FLOKI’s gains have received an extra boost over the past 24 hours emission On October 27, its tokenization platform TokenFi launched its own native token TOKEN. It is worth noting that users will be allowed to pledge their FLOKI holdings to receive TOKEN.
$floki Staking and new tokenization platform are launching today, targeting the $16 trillion tokenization industry! ️️️️
Their new token is named TokenFi $Tokens Stock Quotes! ️️️️️️
Brilliant idea and execution.No wonder #floki perform better than $DOGE, $SHIB,… https://t.co/n3sjXYdnJR
— Shelby (@CryptoNewton) October 27, 2023
Where will FLOKI price go next?
FLOKI’s continued price rise has taken its daily relative strength (RSI) to its highest overbought level since January 2023.
Overbought RSI usually precedes correction periods. In the case of FLOKI, its early overbought RSI subsequently led to a sharp price decline, thus increasing the likelihood of a similar downside reaction in the coming days and weeks.
If FLOKI’s rise stalls, the FLOKI/USD pair could fall towards the 0.5 Fibonacci retracement level near $0.00003548 in October 2023. A decisive close below this level could send the price down towards the 0.236 Fibonacci retracement level in November 2023, near $0.00003069, a 20% drop from current price levels in November 2023.
On the contrary, the price is likely to break above the current resistance at $0.00004027 and rise towards $0.00004078.
Are memecoins like DOGE and SHIB awakening?
Almost all memecoins have underperformed top cryptocurrencies like Bitcoin so far in 2023, with some even recouping year-to-date (YTD) losses.
For example, top memecoin Dogecoin (DOGE) has gained more than 30% since the Grayscale Bitcoin ETF was announced on October 19. Nonetheless, its year-to-date return as of October 27 was just 1.3%, compared to BTC’s 105% return in the same year. Dot.
Likewise, Shiba Inu (SHIB) is down 2.75% year to date, despite rising nearly 25% over the past seven days.
The only exception is Pepecoin (PEPE). A meme coin debuted in April 2023 and has since risen more than 500%. Then there’s FLOKI, which had a year-to-date return of about 435% as of October 27.
Related: Is Bitcoin Overheated?Some think the answer lies in PEPE
Speculators look for meme coins to get the biggest returns in the shortest amount of time, often at times when risk sentiment is strong across the cryptocurrency space. For example, in the 2020-2021 cryptocurrency bull market, Dogecoin surged to 67,475%, while Bitcoin gained 1,700%.
Still, when risk sentiment runs out, meme coins could fall significantly.
For example, DOGE is down 90% from the 2020-2021 bull market top. Therefore, whether memecoin can continue to rise in the future largely depends on the updates of the ETF and its impact on the price of BTC.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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