FLOKI Price Skyrockets 140% in One Week — Are Memecoins Like DOGE and PEPE Finally Gaining Momentum?

Bitcoin’s (BTC) meteoric rise to $35,000 this week has not only attracted attention to the major cryptocurrencies but has also sparked a resurgence in the memecoin market. One such standout performer is Floki (FLOKI), which has outperformed its competitors with a staggering 140% surge in price.

FLOKI’s Price Surge Fueled by Bitcoin ETF Excitement and TokenFi Launch

As of October 27th, FLOKI reached its highest level in five months, skyrocketing over 140% to $0.00004261. The memecoin, known for its controversial marketing tactics, experienced this surge following the filing of a new spot Bitcoin exchange-traded fund (ETF) on NYSE Arca by Grayscale Investments, a notable investment firm based in New York.

FLOKI/USD daily price chart. Source: TradingView

In addition to the ETF news, FLOKI’s recent gains have been bolstered by the launch of its tokenization platform, TokenFi, which introduced its native token, TOKEN, on October 27th. TokenFi allows users to stake their FLOKI holdings and receive TOKEN in return.

What’s Next for FLOKI’s Price?

The ongoing rally in FLOKI’s price has pushed its daily relative strength index (RSI) to its most overbought level since January 2023.

An overbought RSI often precedes a correction phase. In FLOKI’s case, previous instances of overbought RSIs have been followed by significant price declines, indicating the possibility of a similar downward reaction in the coming days or weeks.

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FLOKI/USD daily price chart. Source: TradingView

If FLOKI’s rally loses steam, the FLOKI/USD pair could potentially drop towards its 0.5 Fibonacci retracement line, located near $0.00003548 in October 2023. A decisive close below this level could result in a price crash towards the 0.236 Fibonacci retracement line, approximately $0.00003069 in November 2023, representing a 20% decline from the current price levels.

On the other hand, if the price manages to break above the current resistance at $0.00004027, it could pave the way for further upside towards $0.00004078.

Are Memecoins Like DOGE and SHIB Awakening?

In 2023, most memecoins have significantly underperformed major cryptocurrencies like Bitcoin, with some even recording year-to-date (YTD) losses.

For instance, despite rallying over 30% following the Grayscale Bitcoin ETF announcement on October 19th, Dogecoin (DOGE) has only delivered meager YTD returns of 1.3% as of October 27th, in stark contrast to Bitcoin’s impressive 105% gains during the same period.

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Memecoin performance over the past 7 days versus YTD performance. Source: Messari

Similarly, Shiba Inu (SHIB) has suffered a 2.75% YTD decline, despite a recent surge of nearly 25% in the last seven days.

However, there are exceptions, such as Pepecoin (PEPE), a memecoin that debuted in April 2023 and has soared over 500% since its launch. FLOKI is another standout performer, boasting YTD returns of approximately 435% as of October 27th.

Related: Is Bitcoin Overheated? Exploring the Potential Clues Hidden in PEPE

Investors and speculators often flock to memecoins in search of maximum returns in minimum time, especially during periods of high risk appetite in the cryptocurrency space. For example, during the 2020-2021 crypto bull market, Dogecoin surged by a staggering 67,475% compared to Bitcoin’s 1,700% gains.

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DOGE/USD weekly price chart. Source: TradingView

However, it’s important to note that memecoins can also experience sharp declines when risk sentiment wanes. As evidenced by DOGE, which plummeted by 90% from its 2020-2021 bull market peak. Therefore, the future rally of memecoins largely hinges on the ETF update and its impact on Bitcoin’s price.

This article is for informational purposes only and does not constitute investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.

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