Home / Analysis / Crypto / Technical Analysis / Floki DAO Passes Proposal To Burn 15 Billion Tokens — What’s The Outlook for FLOKI Price?

Floki DAO Passes Proposal To Burn 15 Billion Tokens — What’s The Outlook for FLOKI Price?

Published May 17, 2024 1:26 PM
Nikola Lazic
Published May 17, 2024 1:26 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Floki DAO approved the burning of 15.25 billion FLOKI tokens.
  • The token burn could, potentially, increase FLOKI’s market value.
  • FLOKI’s price recovery could signal new bullish phase.

The Floki DAO community has overwhelmingly approved  a proposal to burn a substantial quantity of FLOKI tokens. In a recent vote, 99.84% of participants agreed to permanently remove 15,246,000,000 $FLOKI tokens from circulation.

Following the Floki  DAO’s approval, the token burning will take place within the next week. This move is expected to affect FLOKI‘s tokenomics by potentially increasing scarcity. As a result, it could also influence its market value.

With these things in mind, what’s in store for the price of FLOKI? 

FLOKI Price Analysis 

FLOKI’s price began to rise on February 5, starting from $0.000027 and soaring to $0.0003 by March 11, marking a tenfold increase. However, this surge met resistance, and the price fell to $0.0002 by March 18. This signalled the first sign of decline and the potential end of its upward trend.

FLOKI
FLOKIUSD | Credit: Nikola Lazic/Tradingview

Wave analysis interprets this rise as the culmination of a bullish phase in a five-wave pattern. The daily chart’s Relative Strength Index (RSI), which previously indicated overbought conditions, dropped along with the price, further confirming the reversal.

By April 13, FLOKI had plummeted by 60%, bottoming out at $0.00011. After this low, the price rebounded to $0.0002, meeting horizontal resistance. It formed an ascending triangle pattern with its ascending support line.

This pattern suggests that the recovery from April 13 might be the start of a bullish phase with the potential to top previous highs. However, for this to be confirmed, there needs to be a breakout above the $0.0002 resistance level.

Should FLOKI manage to break above this threshold and maintain upward momentum, the price could potentially climb above $0.0004 in its fifth wave. On the other hand, a rejection at this level and a break below the ascending support could see FLOKI setting new lows below the April 13 figure.

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.

Was this Article helpful? Yes No