- FLOKI has entered the Coinbase roadmap, becoming the third memecoin in the past three days to do so
- However, despite the initial momentum, a parabolic run still remains elusive
Floki [FLOKI] just got a big boost from it mention on Coinbase, catching the attention of investors. Coincidence or not, this listing came amid the market recovery, leaving FLOKI with a strong chance of a parabolic run.
While the 70% weekly gain could mean momentum for the altcoin, some might say the market is overheating. However, this bull cycle feels different, especially with Bitcoin entering a risk zone.
Normally at this stage, investors are likely to look for low-risk, high-capitalization assets to redistribute the gains from the post-election bull cycle. Especially since BTC has already been pushed to a new ATH of $93k.
As a result, it may be too early to tell whether FLOKI is gearing up for a correction. In any case, with its Coinbase listing and investors looking for safer bets, FLOKI could be poised for a big step forward.
Whales collect FLOKI, but there’s a catch
Over the past two cycles, the market has undergone a significant shift, making memecoins less susceptible to sudden fluctuations as more and more investors recognize them as a growing asset class with real use cases.
Until the last cycle, DOGE achieved the most benefits. However, this cycle has caused a shift even within the memecoin community. Over the past three days, Coinbase has added three top memecoins – PEPE, WIF and FLOKI – to its roadmap.
The massive surge that followed, with each coin recording a daily high of over 20%, really demonstrated their massive hold on the market and even pushed the top. altcoins behind.
This shift will likely play a major role in the future memecoinsincluding FLOKI, to capture notable capital flows away from Bitcoin during periods of high volatility.
As a result, addresses holding 1 billion FLOKI tokens have reacted bullishly to the listing, now holding a total of 55 billion. This marked a staggering increase of 52 billion in just over a day.
Source: Santiment
While this may seem bullish at first glance, there may be another factor at play. Looking at the chart above, the inconsistency in whales’ accumulation cannot be overlooked, highlighting the high volatility inherent in memecoins.
Therefore, it will be challenging to predict whether FLOKI can continue its upward trajectory unless Bitcoin breaks through a key psychological level.
The reasoning is simple: Bitcoin, valued at $91,000 (at the time of writing), has faced significant resistance around $90,000, which has historically led to huge rallies in memecoins.
As the hype around the Coinbase listing subsides, FLOKI’s price could reverse as the RSI appeared to be in overbought territory. Weak hands can fall out after capturing profits, while whale accumulation also remains inconsistent.
Therefore, for a potential parabolic move towards $0.00030, Bitcoin will likely need to break the $93,000 resistance level. This could help maintain investor confidence in FLOKI’s long-term prospects.
The chance that Bitcoin will break an important psychological level
Looking at the daily price chart, Bitcoin rose to an all-time high in less than ten trading days, a move fueled by a huge rush following the election results.
However, momentum has since stalled, with Bitcoin consolidating within the $90,000 – $91,000 range over the past three days. These rapid gains in such a short period of time are what set this cycle apart from others.
Realistic or not, here is FLOKI’s market cap in BTC terms
Unlike previous election cycles, when BTC never fell below its Election Day price level, this time it has retreated.
This means that despite newly elected President Trump’s routine expressions of support, the basic human element of “erring on the side of caution” remains unchanged. This makes this cycle more volatile than previous ones.
In summary, unless Bitcoin reaches a price level that is seen as the right, affordable dip for new entrants, bulls will struggle to break the $93,000 resistance. Therefore, memecoins like FLOKI will likely remain consolidated or undergo a possible correction until these issues resolve themselves.