Floki Inu has recently conducted a significant token burn, eliminating over 14.5 billion FLOKI tokens valued at more than $3.2 million in the past week. This action coincided with a remarkable 455% month-to-date surge in its price. FLOKI, known for its dog-themed meme coin, has experienced its highest price level in over two years, likely fueled by the recent token burn initiative.
The project has been actively burning tokens for some time, with the Floki Inu DAO burning 4.2 trillion FLOKI tokens in January last year, amounting to $100 million. These token burns, which are based on utility, aim to reduce the circulating supply. As demand for Floki Inu's ecosystem grows, more tokens are being burned, driven by products such as the Floki Staking program, the FlokiFi Locker DeFi Protocol, and transactions on the ETH and BNB chains.
The recent surge in Bitcoin prices, reaching a new all-time high near $72,000 on March 11, has contributed to a bullish sentiment among investors. Memecoins like FLOKI have benefited from this market optimism, experiencing significant gains in the recent buying frenzy.
However, FLOKI's price encountered profit booking on March 11, following its substantial rally. Despite erasing a zero from its price label during the month, the rally paused as FLOKI attempted to surpass $0.0003, resulting in an 18.3% drop to a daily low near $0.000245 on March 11. The relative strength index (RSI) for FLOKI remains overbought, indicating a strong presence of bulls in the market. However, an overbought RSI level often signals a potential bearish reversal or consolidation phase.
If FLOKI's price rally stalls, it may find support near $0.00022 or the 20-day EMA support near $0.00015. Conversely, continued upward momentum could lead to a breakthrough of resistance levels near $0.000343 and $0.000433.
