Back to the list

Could profit-taking from FLOKI holders lower its price?

fxstreet.com 27 June 2024 08:01, UTC

Trading bot that will burn $FLOKI tokens announcement fails to impact its price.
$FLOKI's In-the-Money Addresses reveal a sharper correction may occur if the market continues its downward movement.
$FLOKI's Token Age Consumed shows long-term holders may have been taking profits.

$FLOKI is down nearly 6% on Wednesday, as key on-chain metrics and speculations suggest that investors may enter a profit-taking spree if its price encounters a steep decline.

$FLOKI holders are likely to take profit if price declines further

The $FLOKI team recently launched a Telegram trading bot that will buy and burn $FLOKI tokens with 50% of its generated fees. The aim is to make $FLOKI deflationary over time. While the move should have signaled a bullish sentiment, $FLOKI is down by almost 6% in the past 24 hours as its on-chain metrics reveal a potential further plunge.

$FLOKI's In/Out of the Money data reveals investors may have been shedding their holdings gradually.

In/Out the Money measures the average purchase cost of an asset against its current price. An address/coin is in the money if the current price exceeds its average purchase cost and out of the money if vice versa.

According to data from IntoTheBlock, after $FLOKI reached an all-time high of $0.0003449 on June 5, 99% of its holders were in the money. This is similar to its rally on March 1, when 99.3% of holders were also in the money. Although the percentage was the same, the number of in-the-money wallets at the March high was 74K, while that of June increased to 78K.

Additionally, only 76.8% of $FLOKI holders are currently in profit. Combining the above data points indicates that $FLOKI holders may have gradually been taking profits. Also, with the rise in addresses following its last rally, a sharper correction may ensue if the market downturn persists.

$FLOKI Global In/Out of the Money

$FLOKI's Token Age Consumed (TAC) metric in the last two weeks also aligns with this view.

Token Age Consumed tracks the movement of previously dormant coins. A spike in the TAC chart indicates that long-term holders are moving their tokens.

According to data from Santiment, between June 5 and 19, $FLOKI's TAC hovered around 20 trillion while its price declined by almost 50%, indicating that long-term holders may have been taking profits.

With several crypto community members speculating that the meme coin cycle has ended, $FLOKI could see more profit-taking if its price declines further.

Meanwhile, a recently launched Solana meme coin, DORAE, crashed 99% after an insider — potentially the coin's developer — dumped 2.5M of its supply for $1.45 million worth of Solana, according to Lookonchain

fxstreet.com