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190 Billion FLOKI Could Burn – Will This Boost Floki Price?

Published February 29, 2024 3:51 PM
Nikola Lazic
Published February 29, 2024 3:51 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Floki aims to burn 2% supply, enhancing scarcity and security.
  • Active and new FLOKI addresses significantly increase, showing rising interest.
  • FLOKI’s price up 130% in February, with further gains expected.

The Floki development team proposes to burn 2% of FLOKI‘s circulating supply, or about 190.92 billion tokens, to increase the memecoin’s scarcity and enhance security. This initiative involves transferring more than $11 million worth of tokens to an inaccessible wallet, effectively removing them from circulation. 

This decision follows a successful burn event in January 2023, significantly boosting the token’s price. The Multichain bridge, which Floki withdrew from following a major security breach in July 2023, holds the tokens designated for burning.

The price of Floki rose about 13% after the announcement, outperforming the broader crypto market’s stable performance, but will the price rise continue? 

FLOKI Fundamentals 

The number of active FLOKI  addresses has been increasing over the last seven days, showing a rise of 330%. It went from a low of 201 on February 24 to a high of 688 on February 29. 

On-chain data
Floki addresses data

This is also the case for new addresses, which rose from 74 to 261 in the same period, indicating interest in this blockchain. 

On-chain data
Number of large FLOKI transactions.

The number of larger transactions rose from February 24, when no large transactions happened, to a high of 19 txs on February 27. By February 29, the figure was slightly lower at 12 txs, which is still higher than usual. 

FLOKI Price Analysis 

The price of FLOKI started its current uptrend on February 5, after a higher low of $0.000027. On February 29, it reached a high of $0.000062, increasing 130% across the month. It encountered significant resistance but there were no signs of the memecoin’s momentum slowing down. 

Daily chart.
A FLOKI breakout looks likely.

 

FLOKI started its larger uptrend in September, when it reached its first post-bear cycle higher low of $0.000015. According to our wave count, the current rise is its third wave. With the daily chart’s Relative Strength Index indicating overbought conditions, some sideways movement took place around the resistance zone. 

But FLOKI should continue its uptrend. Its next target is $0.000078. If it manages to get there, that would mean its third wave would be complete. After establishing a higher price plateau above $0.000068, one more high could come, above $0.00012. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

 

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