In a dramatic turn of events, the price of Floki Inu ($FLOKI) has experienced a sharp decline of 17.7% over the past 24 hours. This plunge has raised concerns and sparked discussions within the cryptocurrency community. The sudden drop in $FLOKI’s value appears to be linked to a significant transaction involving a wallet that had been inactive for 2.5 years. Approximately nine hours before the price plummeted, this dormant wallet, which is believed to be connected to RealFlokiInu, deposited 15.22 billion $FLOKI, equivalent to $2.27 million, into Binance, one of the largest cryptocurrency exchanges.
The $FLOKI price is 17.7% in the past 24 hours.A wallet linked to @RealFlokiInu returned after 2.5 years of dormancy and deposited 15.22B $FLOKI ($2.27M) to #Binance 9 hours ago, just before the price plunged.These $FLOKI were released from the Floki deployer to this… pic.twitter.com/9eDNqy3Mhr
— Spot On Chain (@spotonchain) August 30, 2024
This large influx of tokens into the market could have triggered a sell-off, leading to the sharp decrease in $FLOKI’s price. Market analysts and traders are closely monitoring the situation, speculating on whether this could be a deliberate move to liquidate holdings or an attempt to manipulate the market.
Historical Context of the Wallet Activity
Adding further intrigue to the situation, it has been revealed that the $FLOKI tokens deposited by the dormant wallet were originally released from the Floki deployer to this specific wallet in early 2022. At that time, the price of $FLOKI was only $0.0000307, a fraction of its current value before the recent drop.
The attached 4-hour trading chart further illustrates the recent market dynamics of $FLOKI. Technical indicators such as the Alligator and Awesome Oscillator (AO) show a clear bearish trend. The Alligator indicator, with its moving averages converging and crossing, indicates a downtrend, while the AO is displaying strong negative momentum, reinforcing the bearish outlook.
4-hour FLOKI/USDT Chart | Source: TradingView
