Benzinga - A pseudonymous cryptocurrency analyst Rekt Capital said that meme cryptocurrency FLOKI (CRYPTO: FLOKI) might experience a price surge.
What Happened: Rekt Capital on X said, “FLOKI is in the process of retesting its final major resistance as new support (black). Successful retest would send #FLOKI to new highs. Needs to continue to hold here. Retest is in progress.”
$FLOKIFLOKI is in the process of retesting its final major resistance as new support (black)
Successful retest would send #FLOKI to new highs
Needs to continue to hold here
Retest is in progress#Crypto #FLOKIUSDT https://t.co/g1MeyjrNQl pic.twitter.com/SLM7J7VuUp
— Rekt Capital (@rektcapital) March 12, 2024
According to the provided chart, FLOKI confronts two critical resistance levels at $0.000021 and $0.0000625.
In technical analysis, resistance levels are price points where selling pressure overcomes buying pressure, making it hard for the asset price to rise beyond this level. When an asset’s price manages to break above a resistance level, that price point can then become a new support level—a level where buying interest is strong enough to prevent the price from falling further.
What Rekt Capital is suggesting is that FLOKI overcame a price hurdle and is now retesting that level, not as a ceiling that caps upward movement (resistance) but as a floor that helps to keep the price from dropping (support). If FLOKI manages to stay above this level without falling below it again, this successful retest would confirm the new support level as robust.
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Why It Matters: This comes as Floki executed token burns, effectively reducing its circulating supply. Just a week earlier, the meme coin burned tokens worth over $1 million, following which another batch tallying up to $3.2 million was burned.
Further propelling the burn was the FlokiFi Locker, a DeFi crypto locker protocol that purchases Floki to burn, perpetuating the reduction of available tokens.
Data from the analytics platform Santiment indicate a spike in social dominance for Floki.
Meanwhile, another pseudonymous cryptocurrency analyst Inmortal expressed optimism about the potential rise of the dog-inspired meme coin Floki.
Inmortal said on X, "PEPE pumped. FLOKI next. Muscle memory, contagion. Call it what you want, but it works."
Price Action: At the time of writing, FLOKI was trading at $0.0002771, up 6.46% over the last 24 hours.
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