Floki (FLOKI), a meme coin inspired by the Shiba Inu (SHIB) project, saw a 20% price drop in the past 24 hours. This decline was triggered by the reactivation of a dormant wallet that is linked to the Floki team.
According to Spot On Chain, the wallet, inactive for two and a half years, transferred 15.22 billion FLOKI tokens to Binance. The tokens were valued at $2.27 million. Such transfers generally signal bearish intentions, thereby causing FLOKI’s price to plummet.
The wallet, holding tokens since 2022 when the price was $0.000030, is likely taking profits. Besides this wallet, many other large holders have also started offloading FLOKI, as reported by IntoTheBlock.
The number of addresses holding between $100,000 and $10 million worth of FLOKI has decreased, indicating rising selling pressure. This could lead to further declines in FLOKI’s price if large holders continue to offload their tokens.
Moreover, from a technical analysis perspective, the Balance of Power (BoP) indicator suggests ongoing selling pressure. If this trend continues, FLOKI’s price could drop to $0.000096 or lower.
However, some traders believe that once the current dip ends, FLOKI could aggressively bounce back due to its strong fundamentals and market resilience.
