Bitcoin's (BTC) rise to as high as $35,000 this week has also lifted a number of memecoins, including Floki (FLOKI), which has beaten its top rivals in percentage gains.
FLOKI price up 140% amid Bitcoin ETF hype, TokenFi launch
As of Oct. 27, FLOKI had surged over 140% to $0.00004261, its highest level in five months. The memecoin, known for its controversial marketing tactics, started rallying after New York-based Grayscale Investments filed for a new spot Bitcoin exchange-traded fund (ETF) on NYSE Arca, as shown below.
Looking at the past 24 hours, FLOKI's gains have picked an additional boost from the launch of its tokenization platform, TokenFi, with its own native token, TOKEN, on Oct. 27. Notably, users will be allowed to stake their FLOKI holdings to receive TOKEN.
$FLOKI is launching staking and a new tokenization platform to target the $16 trillion tokenization industry today! ️️️️
Their new token is named TokenFi with the $TOKEN ticker! ️️️️️️
Brilliant idea and execution. No wonder #Floki is outperforming $DOGE, $SHIB,… https://t.co/n3sjXYdnJR— Shelby (@CryptoNewton) October 27, 2023
Where is FLOKI price going next?
FLOKI's ongoing price rally has brought its daily relative strength (RSI) to its most overbought level since January 2023.
An overbought RSI typically precedes a correction period. In FLOKI's case, its earlier stint with overbought RSI's has followed up with strong price declines, thus raising the possibility of a similar downside reaction in the coming days or weeks.
If FLOKI's rally stalls, then the FLOKI/USD pair risks dropping toward its 0.5 Fibonacci retracement line near $0.00003548 in October 2023. A decisive close below the level may crash the price toward the 0.236 Fib line near $0.00003069 in November 2023, down 20% from the current price levels.
Conversely, the price may break above the current resistance level of $0.00004027 to pursue a run-up toward $0.00004078.
Are memecoins like DOGE, SHIB waking up?
Almost all memecoins have underperformed top-ranking cryptocurrencies like Bitcoin so far in 2023, with some even returning year-to-date (YTD) losses.
For instance, top memecoin Dogecoin (DOGE) has rallied over 30% since the Grayscale Bitcoin ETF announcement on Oct. 19. Nonetheless, its YTD returns as of Oct. 27 are a mere 1.3%, compared to BTC's 105% gains in the same period.
Similarly, Shiba Inu (SHIB) is down 2.75% YTD despite rallying nearly 25% in the last seven days.
The only exceptions are Pepecoin (PEPE). A memecoin that debuted in April 2023 and has risen over 500% since. Then there's FLOKI, whose YTD returns are around 435% as of Oct. 27.
Related: Is Bitcoin overheated? Some believe the answer is hiding in PEPE
Speculators hunt memecoins for maximum returns in minimum time, typically when risk sentiment is strong across the crypto space. For instance, the 2020-2021 crypto bull market saw Dogecoin surging up to 67,475% versus Bitcoin's 1,700% gains.
Nonetheless, memecoins can fall as drastically when risk sentiment exhausts.
DOGE, for instance, has crashed 90% from its 2020-2021 bull market top. Therefore, whether or not memecoins will continue their rally in the future largely depends on the ETF update and its impact on the BTC price.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
