Competitor of Shiba Inu FLOKI had one of the best performances this year and continues to maintain a high level in the market. That’s it the price more than doubled in 2024, triggering an influx of new investments in the meme currency. However, as investors pour money into FLOKI, one analyst expects this surge to be short-lived, predicting a massive drop in the altcoin’s prices.
FLOKI primed for a rally and then a dump
Crypto analyst iMoneyTeam has foreseen a dump in the price of FLOKI that could erase all of the meme coin’s gains from recent months. The analysis, published on the TradingView platform, follows the movement of FLOKI in recent months in an attempt to predict. where the price goes next. As the crypto analyst explains, the price reached a “bearish iCH” in the internal structure, which created “an internal pullback”, represented in the chart below.
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This is evident in the price pullback that has rocked the meme coin in the month of June so far. However, where one would normally expect a rally for an asset in this situation and a continuation of the rally, the crypto analyst believes it is a setup for a further pullback.
For now, however, the analyst identifies that there is still a lot bullish pressure on meme coin. This occurs even when its price has broken a trendline, which would normally be bearish. But in this case, upward pressure could help the price maintain its position. From here, there could be a price recovery towards new all-time highs. However, it is after this that the real problem with cryptocurrency begins.
Multiple Targets for Meme Coin
Following iMoneyTeam’s prediction, before the FLOKI price will break, there will be an increase in price. The chart shows a recovery to $0.00044, which represents a nearly 60% increase in the meme coin’s price at the time of writing. However, after this, the crypto analyst expects competitor Shiba Inu to reach a supply zone, which will begin its decline.
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Once the price starts falling, the analyst expects the price to drop to $0.00006. Now, from the current price of $0.00018, this would mean an 80% drop in price. However, if the price reaches a new all-time high price of $0.00044, as the analyst predicted before falling, so a drop to $0.00006 would mean an 86% decline.
In terms of when this might happen, the crypto analyst does not provide a timeline of events. However, the chart shows that the price would reach a demand zone around $0.00006, which would suggest that this would be the low point for the decline.
Featured image from Asia Crypto Today, chart from Tradingview.com