A wallet that had not been active for 2.5 years woke up and sold $2.27M in Floki Inu tokens after transferring them to Binance.
The price of FLOKI declined by 15.23% in a single trading session after the news, with technical signals pointing to a lower price.
The return of old wallets can cause great changes in the price of cryptocurrencies and the overall market.
In a surprising turn of events, an old wallet linked to Floki Inu became active after two years of inactivity. This led to a significant increase in trading activity, ultimately resulting in the devaluation of the FLOKI coin. The wallet transferred 15.22billion FLOKI tokens, equivalent to approximately $2.27million,to the Binance exchange. This significant transaction occurred just nine hours before the FLOKI price dropped, causing concern among investors as the tokens are now circulating in the market again
https://twitter.com/spotonchain/status/1829359195172515923
The wallet has been inactive since January 2022, when it received 15.22 billion tokens from the Floki deployer for $0.0000307 per token. The recent transfer of these tokens to Binance has garnered significant attention from the cryptocurrency community. Large and unexpected movements of tokens always impact their prices and can affect market dynamics.
Technical Indicators and Market Reaction
FLOKI's price plummeted after that, reaching a low of approximately $0.0001289 in a single day—a notable reduction of 15.23%. This downward trend persisted, with the token's value declining by 17.7% on the last day. Fears of the possible consequences of reintroducing such a massive number of tokens into the market have been cited as the reason for the abrupt sell-off.
Technical analysis further supports the bearish outlook for FLOKI. The token's price has fallen below a key support level at$0.0001263, suggesting the possibility of more downside movement. The Relative Strength Index (RSI) currently stands at 49.94, this tells us that FLOKI is not in an overbought or oversold zone. Also, the Moving Average Convergence Divergence (MACD) continues to trade below the signal line hence implying the likelihood of the continuation of the price downtrend.Experts are now urging investors to exercise caution as the market navigates this new turn of events that it did not anticipate. The recent activation of the dormant FLOKI wallet and the transfer of tokens to Binance have added a new level of risk to investing in cryptocurrency. While there is the possibility of some traders using the new price as a good buying opportunity, many of them are still skeptical of the market and believe that there will be more volatility in the near future.
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