Key Takeaways:
- Floki Inu announced bullish updates, including an exchange listing.
- However, FLOKI price failed to capitalize on the news.
PATNA (CoinChapter.com) — Meme coin Floki Inu price action seems to have run out of gas. After spiking 353% since Jan 1 to reach a high of $0.0000349 on Feb 7, FLOKI price rally began moving downward. The downtrend was surprising considering that Floki Inu recently shared some traditionally bullish news.
On Feb 9, the meme token’s team announced a listing on the Kanga Exchange for the Floki Inu token. Listing on the Polish exchange means that Floki Inu is now listed on more than 20 exchanges globally.
Exchange listings are typically bullish cues for an asset’s price action. But, despite the news of Floki Inu’s listing on the Kanga exchange, FLOKI price failed to mount a rally.
In other news, on Jan 30, Floki Dao passed a proposal to burn 4.2 trillion Floki tokens and reduce the FLOKI transaction tax to 0.3%. However, in a Feb 10 tweet, the meme token’s team shared that they burnt 5.1 trillion Floki Inu tokens.
Burning tokens is usually a bullish tactic to reduce supply and bolster prices, the FLOKI token burn event cited security as a rationale. The team stated that disabling the cross-chain bridge would help mitigate the impact of any potential exploit or hack.
We feel it would be in the best interest of the project to permanently disable our main cross-chain bridge and BURN the tokens in the bridge if the DAO votes in favor of doing so.
The DAO proposal stated.
In 2022, cross-bridge exploits accounted for nearly $2 billion lost or stolen across various projects. The Floki team noted that an exploit would devastate the project as its bridge held 55.7% of FLOKI’s total circulating supply.
Floki Inu Price Momentum Turns Bearish
Meanwhile, FLOKI price posted its largest bearish candle since May 2022 on Feb 9 after closing the day with a 23.43% loss, the same day Floki Inu got listed on the Kanga exchange. The downtrend began after FLOKI price reached $0.0000349, the token’s highest since Apr 2022.
Also Read: Ethereum Price Plunges After Rejection at $1,700 Highs: Trend Remains Bullish
However, despite the uptrend, the momentum oscillator MACD had been turning bearish for the Floki Inu token.
Negative bars on the MACD histogram are expanding, indicating the MACD line (difference between 12-day and 26-day EMA) is moving away from the MACD signal line (9-day EMA of MACD). The MACD lines formed a bearish crossover for FLOKI price on Feb 10.
Should the downtrend continue, FLOKI price might drop below its 20-day EMA (red wave) to test support near $0.0000212. Breaching the immediate support level could force the Floki Inu token price to fall to its 50-day EMA (purple wave) support near $0.000017 before recovering.
On the other hand, Floki Inu bulls mounted a faint rally on Feb 10, helping the meme coin price jump 7.3% to form a daily high near $0.0000243 before correcting. If the up-move continues, FLOKI price might rise to resistance near $0.0000253.
A break and hold above immediate resistance might help the meme token challenge resistance near $0.0000313 before downside corrections pare gains.
