Key Takeaways:
- Floki Inu launched an asset tokenization platform called TokenFi.
- However, the FLOKI price rally stuttered after a week-long bull run.
- FLOKI’s price is moving inside a bearish technical pattern.
NEW DELHI (CoinChapter.com) — Floki Inu (FLOKI) has launched a crypto and asset tokenization platform called TokenFi. With the launch, the memecoin team aims to “capitalize on the trillion-dollar tokenization industry.”
Asset tokenization refers to the process in which ownership rights of an asset are presented as digital tokens and stored on a blockchain. Floki Inu stated in its announcement that the nascent sector might become a $16 trillion industry by 2030.
The Birb Nest’s Adrian Zduńczyk claimed Floki Inu’s tokenization project was “a big step” towards leveraging the fledgling sector. Zduńczyk especially highlighted the tokenization of real-world assets as the key to the project’s success.
The Birb Nest is a crypto-education platform.
TokenFi aims to simplify the tokenization process and plans to become the “foremost tokenization platform in the world,” per the announcement.
The TokenFi project will have a maximum supply of 10 billion tokens, split equally across the Binance Smart Chain and Ethereum. The launch market cap for the project will be $50,000 circulating and $500,000 diluted.
Furthermore, the Floki Inu team will add 10% of the TokenFi supply to liquidity pools on Uniswap and PancakeSwap to allow trade. Additionally, FLOKI stakers would earn 56% of the TOKEN supply over four years.
As such, the launch would likely act as a bullish cue for FLOKI’s price.
FLOKI Price Rally Stutters
Despite the bullish news, the FLOKI price rally halted on Oct. 27, dropping nearly 17% to form a daily low near $0.0000353.
The memecoin’s price likely succumbed to profit booking as traders moved to capitalize from FLOKI’s recent seven-day-long bullrun, which raised FLOKI’s price to its highest level since May 2023.
However, the memecoin started gaining again on Oct. 28, rising nearly 10% to reach a daily high near $0.0000374. Floki Inu’s bullish rally has likely resulted from market hype, with a recovering crypto market buoying all tokens.
FLOKI’s price action resulted in the token’s 50-day EMA (the purple wave) needling above its 100-day EMA (the blue wave) to form a bullish technical pattern called the ‘Golden Cross.’
However, the RSI for FLOKI remained overbought, clocking a score of 78.3 on the daily charts. Overbought RSI levels have historically preceded a reversal or consolidation phase for assets, so traders consider the occurrence a bearish signal.
If bears continue selling, the FLOKI price might drop to the support near $0.0000315. Moreover, breaching the immediate support might force bulls to defend the 20-day EMA (the red wave) support near $0.0000256.
A confirmed break below the immediate support could see traders shorting FLOKI prices, with $0.00000256 as the target.
Conversely, if bulls start a rally, the FLOKI price would face resistance near $0.00004. Breaking and consolidating above the immediate resistance could help the Floki Inu token price target the resistance near $0.0000443 while allowing traders to open long positions after a clean breakout.
Buy FLOKI or Not?
Another bearish cue for the Floki Inu token comes from a technical pattern called the ‘Descending Triangle.’
A descending trendline connecting swing highs and a horizontal trendline joining swing lows form the pattern. The height of the triangle’s thickest section determines the price target in a descending triangle setup.
As such, FLOKI’s price could drop nearly 89% to reach the projected price target near $0.000004. Practice caution when planning to buy FLOKI.
