FLOKI Enters Top 70 Cryptos After Rallying 316% in a Week

The memecoin Floki Inu (FLOKI) has risen significantly in the last week and is now among the top 70 cryptocurrencies by market capitalization. This quick rise is due to a combination of increase in trading volumes and appreciation in price, community-driven token burn amid the wider memecoin season that has gripped the market recently.

At press time, FLOKI was trading at $0.0001498, up 14% in the last 24 hours and 316% in the past week. FLOKI’s market capitalization in addition surged by 10.26% to $1.43B in the last day.

Community Engagement and Token Burn

The rise of Floki Inu can be attributed to a community action whereby a proposal to burn 2% of the token’s supply received overwhelming support. The token burn was considered good by the community and the investors as it meant reducing supply and possibly increasing the value of the remaining tokens.

This prompted FLOKI’s price to rise, gaining over 100% within 24 hours of the proposal being passes. The burn decision followed about 90% votes for the action, so the community clearly agreed with the decision and engaged in the token’s future.

Surge in Trading Volume and Market Interest

The spike in market capitalization of Floki Inu occurs at a time when the meme coins enjoy a higher interest, which is reflected in their substantial trading volumes and social media attention. FLOKI, as well as other meme coins like PEPE and BONK, among others, have had an explosion in trading volume with Santiment reporting an average rise of 3,000% in weekly trading volume.

FLOKI/USD Technical Analysis

On the FLOKI/USD 4-hour price chart, the Stochastic RSI rating of 14.94 suggests that the asset may be oversold and due for a potential price reversal. Consequently, traders may want to monitor for a bullish crossover or divergence to confirm a possible trend change. If the stochastic RSI indicator continues to trend upwards and crosses above the oversold threshold of 20, it could signal a shift in momentum towards a bullish direction.

FLOKI/USD 24-hour price chart (source: TradingView)

In addition, the Relative Strength Index (RSI) is 73.55 and moving below its signal line, indicating a potential weakening of the current uptrend. This could be a sign for traders to exercise caution and wait for further confirmation before entering any new positions. However, with the stochastic RSI showing signs of a potential bullish reversal, it may be wise to keep a close eye on price action for possible entry points.