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Crypto fans are flocking to Floki. But is it time for a pullback? What happens next?

source-logo  invezz.com 06 December 2023 19:45, UTC

Floki Inu, the meme coin cryptocurrency, has had followers aflutter recently, after it took to X to announce that it has reached a second ATH (all-time high) of $80.5 million staked on Floki tokens.

According to $Floki itself, this is in no small part due to Web3 investment firm DWF Labs buying over $1.25 million in Floki tokens recently, which the crypto announced on its website and Medium channel on December 5th.

Crypto stans reacted positively to the news, with the token’s price rising by almost 20% between December 5th and December 6th.

@RealFlokiInu posted on X on December 4th that:

That is over 21% of the total #Floki supply, or over 22% of the circulating supply, locked away in the Floki staking program for a minimum duration of 3 months and up to 48 months… This further enhances Floki’s utility value, strengthens its utility and ensures its long-term stability.”

Read more: Here’s why Caspar and Floki Inu are going parabolic

But is the uptrend over?

A potential Floki pullback: our analyst’s views

Invezz analyst Crispus Nyaga had this to say on Floki’s current popularity:

Floki Inu went vertical on Tuesday after the DWF Labs investment and after the assets staked in its ecosystem hit an all-time high. It has now pulled back, partly because of profit-taking among earlier traders. Besides, at its peak, Floki was up by 152% from its November lows.”

A bull run for Floki ahead?

However, Nyaga went on to say that:

This pullback could be temporary since we are in a bull run. I expect another rally as investors buy the dip.”

One strong reason for this? The ongoing Bitcoin bullishness of the market – which sees some even opining that Bitcoin could reach $100,000 by end 2024 – as a rising tide lifting all cryptocurrency boats.

Another reason for the Viking-themed meme coin to keep rising in price – irrespective of Bitcoin’s – is Floki’s NFT-powered game, hosted on the Metaverse, called Valhalla.

On December 5th, Floki again took to X and released a ‘sneak peek’ of improvements to the P2E game on X – the first time that followers, Floki enthusiasts and crypto traders were getting visuals of the upgrade.

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