The past week has been a turning point for the memecoin community, as it has struggled to attract investors due to a recent preference for less volatile, more stable assets. FLOKI has particularly become a prime example of this shift.
In just seven days, FLOKI has achieved an impressive 22% growth, showing signs of recovery that align with the broader shift in the memecoin market. So, as green shoots of growth begin to appear, does this signify the beginning of a larger-scale rebound for FLOKI?
FLOKI engages in high-risk gambling
The shock in mid-December severely impacted the cryptocurrency market, with both high-end and mid-tier assets suffering from Bitcoin's [BTC] sharp decline.
However, just a week ago, the situation was very different. As BTC surged to $99,000 for the first time, altcoins skyrocketed, while meme tokens took a back seat.
Fast forward to the last week of the fourth quarter, the memecoin market has made a surprising return, with charts showing a bullish trend and rumors of a potential 'super cycle.' However, for FLOKI, the journey is far from over.
As of the time of writing, its price is $0.0001800, still a long way from the recent high of $0.000300. Despite the recent rise sparking some optimism, FLOKI needs sustained momentum to rebuild investor confidence and return to profitability.
The risk is high—around 12,000 addresses hold 30.7 billion FLOKI tokens, purchased at an average price of $0.000259, and they are all currently underwater.
Clearly, these holders are keeping a close watch. Therefore, FLOKI faces pressure for a significant rebound. In fact, analysts predict that FLOKI could rise by 50%, potentially pushing it to $0.00027, but this is no easy feat.
Requires a high level of consistency
From FLOKI's daily price chart, it is clear that the token has maintained a relatively consistent price trend. Nonetheless, market sentiment plays a significant role in the memecoin market. This space is known for its extreme volatility, and FLOKI is no exception.
Currently, about 72% of FLOKI's total supply is held by a small number of large holders, who collectively control around 71.7 trillion tokens. These whales are clearly playing a short-term game, aiming for quick profits.
Therefore, while a sustained rise to $0.00030 sounds enticing, it may be overly optimistic. If conditions are right, a more achievable short-term target could be $0.000260.
That said, don't expect memecoins to rebound overnight. Whales are known to enter the market at low prices and then sell at high prices—if this pattern continues, the $0.000260 level may face resistance, potentially triggering a sell-off.
The coming days will be crucial for FLOKI and the broader memecoin market, given the stakes involved.