FLOKI To Burn 15.2B Coins, Solidifying Bullish Pennant Setup

Floki shows teeth against bears as analysts spot a powerful correlation between FLOKI’s social mentions and price surge.

Floki sitting on a computer on fire.
Created by Kornelija Poderskytė from DailyCoin
  • The FLOKI coin community chooses to burn $3.2M worth of FLOKI tokens.
  • FLOKI briefly ranked as the #1 altcoin by combining social and trading activity.
  • Analysts mark FLOKI’s bullish pennant, reinforcing new all-time high hopes.

A new proposal by FLOKI’s decentralized autonomous organization (DAO) suggests burning 15,246,000,000 excessive FLOKI tokens. The Floki burning proposal quickly gained traction among community members, who have almost unanimously voted to implement it.

According to the results, 99.84% of voters agreed to burn the 15.2B Floki coins, as the proposal overviewed the previous three burns initiated by Floki DAO. Back in July 2022, the Floki community had a vote on whether or not to burn the excessive tokens recovered from a blacklisted wallet, while another 4.97T Floki coins were burned by the community’s decision in January 2023.

Further, Floki holders voted to burn another 190B FLOKI coins in February 2024, retrieved from the multi-chain bridge. Notably, the latest FLOKI DAO burning campaign has fewer Floki coins than the first three DAO-initiated burns.

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However, the deed aligns with FLOKI’s goal to remain a deflationary cryptocurrency fully controlled by the community’s decisions. According to the proposal’s description, the burns will be executed one week after approval.

FLOKI Crowned The New Social Champion

Along with the upcoming $3.2 million FLOKI burn, the Viking horn-themed canine cryptocurrency has recently shown a remarkable record in combined social and trading activity. LunarCrush, a social blockchain data enterprise that closely tracks the sentiment surrounding the most talked-about cryptocurrencies, calculates this unique metric.

Since last week, FLOKI has championed the social on-chain metrics with a steady increase in social mentions, trading volume, and FLOKI’s market price simultaneously. LunarCrush spotted the beginning of this trend on May 11, 2024, as the Viking dog-themed crypto climbed the social intelligence company’s rankings.

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Starting at the #977 position on May 11, 2024, FLOKI continued its social dominance to claim the #1 position in LunarCrush’s AltRank by May 15, 2024. That day, Floki embarked on a 23% bull run to claim a new monthly peak at $0.0002265, according to CoinGecko.

Bullish Pennant To Stir Up A New Peak?

As Floki’s bullish momentum escalates, traders are looking for validation of FLOKI’s bullish pennant status. A pennant is a continuation pattern formed by a flagpole and followed by converging trend lines, signaling a phased consolidation period. The pennant is then followed by a breakout in the same direction as the initial large price movement.

According to crypto analyst World Of Charts, Floki broke the bullish pennant in a 12-hour time frame on May 13, 2024. This price movement showcases a 120% to 130% bull run potential, World Of Charts claims. If that’s the case, FLOKI could erupt into a new all-time high. 

As of press time, FLOKI is changing hands at $0.0002122, with a 2.2% increase over the past 24 hours. Still 37.7% down from the all-time peak, FLOKI maintains a bullish stance with 57.7% monthly gains.

On the Flipside

  • Other key on-chain indicators, such as the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) index, gave mixed signals.
  • To illustrate the ambiguity, the CMF index, used to define large holder interest, was slightly negative at -0.06.
  • Meanwhile, the Relative Strength Index (RSI) was completely neutral at 50, neither oversold nor overbought.

Why This Matters

GameStop stock rejuvenation this week has served a major boost for the meme coin department, setting off double-digit runs for most popular meme currencies.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.