FLOKI plummeted 17% after dormant whales moved 15.22 billion tokens to Binance. Whales' reactivation after a 2.5 year hiatus triggered panic and heavy selling. Weak technical indicators for FLOKI suggest further declines are likely as the overall crypto market struggles.
The value of FLOKI, one of the largest meme coins, plummeted by more than 17% to hit its lowest price since August 21 at $0.00012658.
The drop represents a 64% drop from this year's high and highlights the volatile nature of the meme coin market.
Floki's price drop coincides with a broader bearish trend in the cryptocurrency market as Bitcoin struggles to hold above the $60,000 mark. At press time, BTC is at $59,588.11, down $2.47 over the past week, correlating with the decline in the global cryptocurrency market capitalization from $2.3 trillion last week to $2.09 trillion at press time.
Dormant Pacific whale resumes activity after two and a half years
The main catalyst for this sudden drop was the sudden activity of a dormant whale account linked to the team behind Floki: after two and a half years of inactivity, the account moved 15.22 billion FLOKI tokens (worth $2.27 million) to Binance.
$FLOKI price has increased by 🔻 17.7% in the last 24 hours.
A wallet linked to @RealFlokiInu has returned from a 2.5 year hiatus to deposit $15.22B FLOKI ($2.27M) into #Binance 9 hours ago, just before the price crashed.
These $FLOKIs were released by the Floki Deployer here… pic.twitter.com/9eDNqy3Mhr
— Spot on Chain (@spotonchain) August 30, 2024
The dormant account originally received tokens from the Floki deployer in early 2022, when the token price was just $0.0000307.
The move, which occurred just nine hours before a price crash, caused panic among investors, leading to heavy selling and major outflows from both centralized and decentralized exchanges.
Spotonchain data revealed that net outflows of FLOKI from centralized exchanges fell to the lowest level since August 21, while outflows from decentralized exchanges reached their highest level in over a week.
Despite recent struggles, Floki remains a significant player in the meme coin space with a market cap of over $1.27 billion. Developers are working to transition Floki from just a meme coin into an active ecosystem, launching initiatives such as TokenFi, Floki Locker, and the Valhalla NFT metaverse.
However, weak technical indicators such as death cross patterns and negative percentage price oscillators suggest that the meme coin may fall further in the short term.
