After reaching a peak of $0.000206 a few days ago, FLOKI has undergone a significant downturn, plunging to a low of $0.00016 during this period.
Amidst the broader crypto market slump, memecoins have borne the brunt of the impact. Nevertheless, this decline has presented an attractive buying opportunity for many investors, particularly those with substantial holdings, known as whales.
Consequently, large investors have seized upon this chance to increase their positions in FLOKI, capitalizing on the market dip.
Is FLOKI poised for a surge fueled by whale activity?
According to an analysis by CryptoCrypto, whales have shown increased interest in acquiring FLOKI. The surge in whale purchases typically conveys optimism, indicating their anticipation of a price recovery in the near future.
This spike in whale activity is supported by a notable rise in capital inflows. The influx of funds from these large holders has skyrocketed by 1451%, soaring from 12.8 billion to 199.6 billion, underscoring a strong buying interest from whales.
Moreover, the net inflow for large holders has surged from -2.42 billion to 164.7 billion, implying a significant increase in capital flowing into the asset compared to the outflow.
This trend of heightened whale engagement is further evidenced by a 62.5% uptick in the number of substantial transactions, as reported by IntoTheBlock.
Such a surge in transaction volume indicates an active participation by whales within the network.
Furthermore, the amount of FLOKI held by whales has increased from 7.47 trillion to 7.79 trillion over the past fortnight. This uptrend mirrors an accumulation strategy adopted by whales, where they purchase during price downturns and sell during upswings.
Lastly, FLOKI’s MVRV Ratio currently stands at 2.51, indicating concerns of undervaluation. Once this ratio hits such levels, it suggests a favorable buying opportunity for investors looking to acquire the memecoin at a discounted price.
Historically, FLOKI has demonstrated a reversal towards an upward trajectory when the MVRV drops below 2.5, often peaking around 4.2. This pattern hints at a potential shift towards a bullish trend for the memecoin.
Despite the active accumulation by whales, the price of FLOKI has continued to slide. As of the latest update, FLOKI was priced at $0.0001646, marking a 4.29% decrease on daily charts and extending a bearish trend that has persisted for a month.
While the impact of whale accumulation is yet to be reflected in FLOKI’s price movements, it does set the stage for a possible recovery in the memecoin’s value.
If whales maintain their positions and ongoing buying activities, FLOKI could witness a rebound towards $0.00018. However, should the current downtrend persist, the memecoin might dip further to $0.00015.