- FLOKI entered the Coinbase roadmap, becoming the third memecoin to do so in the last three days
- However, despite the initial momentum, a parabolic run still remains elusive.
Floki (FLOKI) just received a major boost with its registration on Coinbase, attracting the attention of investors. Coincidence or not, this listing came against the backdrop of market recovery, giving FLOKI a solid chance to launch a parabolic run.
Although the 70% weekly gains could mean momentum for the altcoin, some might argue that the market is overheating. However, this bull cycle looks different, especially with Bitcoin enter a risk area.
Generally, at this stage, investors are likely to look for low-risk, high-cap assets to redistribute the benefits of the post-election bull cycle. Especially since BTC has already been pushed to a new ATH of $93,000.
As a result, it may still be too early to tell whether FLOKI is preparing for a correction. Rather, with its listing on Coinbase and its investors looking for safer bets, FLOKI could be ready to take a big step forward.
Whales accumulate FLOKI, but there is a trap
Over the past two cycles, the market has undergone a significant shift, making memecoins less susceptible to sudden fluctuations as more investors recognize them as a growing asset class with real use cases .
Until the last cycle, DOGE reaped the most benefits. However, this cycle has brought about a change even within the memecoin community. Over the past three days, Coinbase has listed the top three memecoins – PEPE, WIF and FLOKI – on its trackmap.
The massive rally that followed, with each coin posting a daily high of over 20%, truly highlighted their vast hold on the market, even pushing the high altcoins behind.
In the future, this change will likely result in significant memecoinsincluding FLOKI, to capture notable capital flows out of Bitcoin during periods of high volatility.
As a result, addresses holding 1 billion FLOKI tokens reacted positively to the listing, now holding 55 billion in total. This represents a staggering increase from the 52 billion recorded in just over a day.
Source: Santiment
While this seems optimistic at first glance, there may be another factor at play. Looking at the chart above, the inconsistency in whale accumulation cannot be overlooked, highlighting the high volatility inherent in memecoins .
Therefore, unless Bitcoin breaks through a key psychological level, it will be difficult to predict whether FLOKI can maintain its upward trajectory.
The reasoning is simple: Bitcoin, valued at $91,000 (at the time of writing), has faced significant resistance around the $90,000 mark, which has historically triggered massive memecoin rallies.
Now, with the hype surrounding the Coinbase listing fading, FLOKI price could reverse given that the RSI appeared to be in overbought territory. Weak hands may shake after locking in their wins, with the accumulation of whales also remaining inconsistent.
Therefore, for a potential parabolic towards $0.00030, Bitcoin will likely need to break through the $93,000 resistance level. This could help maintain investor confidence in FLOKI’s long-term prospects.
Chances of Bitcoin Breaking Key Psychological Level
Looking at the daily price chart, Bitcoin hit an all-time high in less than 10 trading days, a move sparked by a massive run after the election results.
However, the momentum has since stalled, with Bitcoin consolidating in the $90,000-$91,000 range over the past three days. These rapid gains in such a short period of time set this cycle apart from others.
Realistic or not, here is the market capitalization of FLOKI in terms of BTC
Unlike previous election cycles, where BTC never returned below its election day price level, this time it pulled back.
This means that, despite the usual support of newly elected President Trump, the basic human element of “exercise caution” remains unchanged. This makes this cycle more volatile than previous ones.
In summary, unless Bitcoin reaches a price level considered a suitable and affordable “drop” for new entrants, bulls will struggle to break resistance at $93,000. Therefore, until these issues resolve themselves, memecoins like FLOKI will likely remain consolidated or face a potential correction.
