- Elon Musk’s fondness for dog-themed cryptocurrencies has led to a wild surge in the price of one which is named after a dog he recently acquired.
- Floki Inu has gone up by 170 percent ever since Musk revealed that his dog Floki had arrived, with Shiba Floki up 268 percent.
He is known for moving markets in the cryptocurrency world, and it appears that even when he doesn’t intend to, he still wields great power over the market. Elon Musk is behind the spike of a little-known cryptocurrency that was named after his dog. A recent update about the dog, whose name is Floki, sent a token with a similar name on a tear, shooting up 168 percent in a day.
Musk, otherwise known as the “Imperator of Mars“, presumably for his exploits with SpaceX, is the biggest voice in the cryptocurrency market. While he has come under criticism for this, and even attacked Bitcoin for its energy usage, his market-making power remains.
This was best seen in late June when after he announced that he would be getting a new dog named Floki, a cryptocurrency was immediately launched on the Binance Smart Chain under the name Floki Inu. It defines itself as a “community-owned coin birthed by fans & members of the Shiba Inu community.”
It further alleges, “Floki Inu is Elon Musk’s very own shiba inu and he’s hungry for outer-space treats! He’s hyper-deflationary and built to reward you, so more Floki Inu coins are added to your wallet with each transaction.”
Floki Inu and Shiba Floki see massive gains
And today, Musk tweeted that Floki (the dog, not the cryptocurrency), had arrived. This was all the ammunition that the token needed to soar.
Floki Inu shot up from a low of $0.00001641 to hit an intraday high of $0.00004065. It has since then retracted slightly and trades at $0.00003095. Its trading volume is up an incredible 1,702 percent to hit $29.9 million in the past day.
Floki Inu wasn’t the only new cryptocurrency that capitalized on the arrival of Musk’s dog. Shiba Floki saw even higher gains. In the past 24 hours, the meme coin is up 257 percent to trade at $0.000000002052.
Shiba Floki also runs on the Binance Smart Chain. It describes itself as “a descendant of meme father Dogecoin,” and more specifically, “a hyper-deflationary subcoin that has a smart sharing system built-in ecosystem so every investor gets more shibafloki added to their wallet.”
Musk, who also calls himself the “Technoking of Tesla,” is not influencing the cryptocurrency market accidentally for the first time. It now seems like every time he tweets, one cryptocurrency project or another finds a way to associate itself with him and shoot up in price. Whether these tokens can maintain these gains is another question altogether.
With three, top gaining Floki tokens in the picture, it’s time to talk about red flags
With the holidays right around the corner, it is the season for new investments and naturally, more dog coins. At press time, two top gainers on CoinMarketCap – both inspired by Elon Musk’s Floki puppy – were catching eyes. However, at this point, it appeared that the investors need to ask some serious questions before they decide to bring the puppies home.
Do some ‘pupper’ research
Two top performers on CoinMarketCap were Prince Floki V2 [PrinceFloki] and Christmas Floki X [CFlokiX], both tokens based on the Binance Smart Chain. At press time, Price Floki V2’s price was $0.0000001441 and the coin saw a rally of more than 1400% in just a day.
Meanwhile, Christmas Floki X was changing hands at $0.00000001824 and spiked around 846% during the same interval.
Prince Floki claimed to reward users with Dogecoin [DOGE] in return for holding. What’s more, the white paper discussed the token’s rebase function, which would reportedly adjust coin supplies. The white paper noted,
“…we can be on the top gainers parts of websites due to the illusion of a rise in price floor so is a brilliant marketing tool in itself.”
Time to sniff out the facts
The age of a crypto token’s official website can tell potential investors a lot about how much time and expertise was invested in the project. That said, Prince Floki’s website was created in early October.
On 3 December, however, another Floki themed coin – Universal Floki Coin [UFLOKI] – hit a price of $0.00000002923, or rallied by 205878808.75% in 24 hours. UFLOKI was also a Binance Smart Chain token.
Adopt, don’t shop
How badly could a dog coin investment go? Well, users are accusing Snowdog [SDOG], a token on the Avalanche C-Chain, of being a rug pull. Insiders reportedly took millions in funds, leaving investors shocked and confused as the meme token plunged in value from thousands of dollars to less than $100 in a matter of days.
As of press time, CoinMarketCap had not marked SDOG as a rug pull.
Floki Inu Price Analysis: FLOKI Should Defend The $0.0001743 To Sustain The Uptrend
Floki Inu price is up 9% on the day and trades in the red after recording three straight bullish sessions between November 28 and December 02. Things are looking good for traders on the daily timeframe but for traders on the shorter time frames, caution should be taken as FLOKI threatens to fall further.
However, if FLOKI is sustained above the 200 period Simple Moving Average (SMA) it might make an impressive comeback with $0.0002050 in the offing.
Floki Inu Price Bulls Should Defend The 200 SMA Support
Floki Inu (FLOKI) is trading at $0.0001775 above the 200-period Simple Moving Average (SMA) at $0.0001743.
Defending this support is crucial for the meme coin bulls as losing this support will pull the FLOKI price towards the $0.00060 psychological level. A drop further could see FLOKI/USDT drop further to tag the $0.00057 level were the 50 and 100 SMAs converge.
This bearish outlook is validated by the downward movement of the Relative Strength Index (RSI) indicator and the Movign Average Convergence Divergence (MACD) indicator. Also, note that the MACD is about to sent a call to sell FLOKI which might take place in the near term when the 12-exponential moving average (EMA) crosses below the 26 EMA.
FLOKI/USDT Two-Hour Chart Live Chart
On the upside, if Floki Inu price sustains above the 200 SMA, it will make a sharp upswing towards the November 23 intraday high above $0.000205. If this happens, it will represent a 17% upswing from the current price.
The RSI shows that FLOKI was previously in the overbought region indicating that the bulls might still be focused to take Floki Inu higher. Moreover, the MACD line (blue) is positioned above the signal line (orange) indicating that the market is still bullish. Furthermore, the MACD is positioned above the zero line in the positive region indicating that the market sentiment for Floki Inu is positive adding credence to the optimistic outlook.
Floki Inu Price Prediction: Expect FLOKI To Make A 44% Upswing To $0.0002350
Floki Inu price is trading at the $0.0001655 with a bearish bias amid immense pressure from the upper boundary of the descending channel and 100-period simple moving average (SMA) around $0.0001750. FLOKI bulls are struggling to break out of the descending channel but face stiff resistance upwards.
Floki Inu Price Could Rise To $0.0002350
Floki Inu (FLOKI) is on the path to recovery after successfully bouncing off the $0.0001227 embraced by the middle boundary of the falling parallel channel. This bounce back took FLOKI price to a high of $0.0001760 before being rejected by the 100 SMA at around $0.0001750.
This was a 45% rise that saw Floki Inu price flip the 50 SMA from resistance to support. At the time of writing, FLOKI is fighting immense resistance from the upper boundary of the descending channel at $0.000169 and the 10 SMA at $0.0001750.
A bullish break out above this level could see Floki Inu price rise to retest the resistance from the 200 SMA currently at $0.0002171.
If FLOKI bulls overcome the resistance from the said level, the meme coin could rise to tag the November 19 range high around $0.0002350 representing a 44% upswing from the current price.
FLOKI/USDT Four-Hour Chart Live Chart
Note that the Moving Average Convergence Divergence (MACD) indicator is upward moving and has just crossed the zero line into the positive region accentuating the upward outlook.
Looking Over The Fence
Note that the Relative Strength Index (RSI) is showing a negative divergence is it turns downwards away from the overbought region. This means that the bears have not given up on pulling Floki Inu price down.
Hence, failure to hold above the 50 SMA will trigger immense sell orders that would see FLOKI fall to tag the middle boundary of the governing chart pattern at the $0.00010 psychological level.
A drop further may see Floki Inu drop to tag the $0.000050 psychological level or towards the target of the descending parallel channel at $0.000037.