NOIDA (CoinChapter.com)—Floki Inu (FLOKI) burned more than 14.5 billion FLOKI tokens, worth more than $3.2 million, over the last seven days. FLOKI, one of the numerous dog-themed memecoins, rode the wider market bullishness to reach its highest level in over two years. The project’s recent token-burning spree might have contributed to its rally.
Floki Burns Fuel Token’s Rally
Floki Inu has been on the path of token burns for some time now, with the Floki Inu DAO burning 4.2 trillion FLOKI tokens in January last year. The tokens were worth $100 million at the time.
The Floki Inu team introduced utility-based burns, automatically removing tokens from circulation. As demand for the Floki Inu ecosystem’s products increases, so does the number of tokens Floki Inu burns.
The key products driving the burn were the Floki Staking program, the FlokiFi Locker DeFi Protocol, and transactions on the ETH and BNB chains.
Furthermore, the recent surge in Bitcoin prices, which saw the prime crypto chart a new ATH near $72,000 on March 11, has created a bullish mindset among investors. Memecoins rode BTC’s coattails to ride high in the recent buying frenzy.
FLOKI Falls Prey To Profit Booking
Meanwhile, FLOKI price fell prey to profit booking on March 11, after its 455% MTD rally helped FLOKI price erase a zero from its price label. However, the rally stalled after FLOKI bulls tried to punch past $0.0003, resulting in the Floki Inu token dropping 18.3% to reach a daily low near $0.000245 on March 11.
Moreover, the relative strength index or the RSI for FLOKI remains overbought, clocking at 84.42 on the daily charts. The RSI is a momentum indicator for measuring asset price movements to identify overbought or oversold conditions.
Overbought RSI levels and upward-moving average trendlines indicate a strong presence of bulls in the market. However, traders often consider an overbought RSI level a bearish signal since the occurrence usually precedes a bearish reversal or consolidation phase for the underlying token.
If FLOKI’s price rally stalls, the token might drop to the 0.382 Fibonacci support near $0.00022. Moreover, breaching the immediate support might force FLOKI price to the 20-day EMA (red wave) support near $0.00015 before recovering.
Conversely, if the rally continues, FLOKI price could break above the 0.618 Fib resistance near $0.000343 before targeting the resistance near $0.000433.
