- Floki DAO approved the burning of 15.25 billion FLOKI tokens.
- The token burn could potentially increase FLOKI’s market value and signal a new bullish phase
The Floki DAO community has overwhelmingly approved a proposal to burn a substantial quantity of FLOKI tokens. In a recent vote, 99.84% of participants agreed to permanently remove 15.25 billion FLOKI tokens from circulation. This strategic move, aimed at reducing the total supply, is expected to significantly impact the tokenomics and market value of FLOKI.
Impact of Token Burn on FLOKI Price
Following the DAO’s approval, the token burn is scheduled to take place within the next week. By decreasing the overall supply, the burn could increase the scarcity of FLOKI tokens, potentially boosting their market value. The tokenomics of FLOKI will be altered as a direct result, likely sparking renewed interest and investment in the cryptocurrency.
FLOKI Price Analysis
In recent months, FLOKI has experienced significant price fluctuations. Starting from $0.000027 on February 5, FLOKI’s price surged to $0.0003 by March 11, marking a tenfold increase. This dramatic rise, however, met resistance, and the price subsequently fell to $0.0002 by March 18, indicating a potential end to the bullish trend.
Technical analysis using wave patterns suggests this rise was the culmination of a bullish phase in a five-wave pattern. The daily chart’s Relative Strength Index (RSI) indicated overbought conditions during this period, aligning with the price drop and signaling a reversal. By April 13, FLOKI had plummeted by 60%, bottoming out at $0.00011. Following this low, the price rebounded to $0.0002, meeting horizontal resistance and forming an ascending triangle pattern with its ascending support line.
Future Price Predictions
The current ascending triangle pattern suggests that the recovery from April 13 could mark the start of a new bullish phase. For this bullish trend to be confirmed, the coin needs to break above the $0.0002 resistance level and maintain upward momentum. Should this breakout occur, the price could potentially climb above $0.0004 in its fifth wave.
Conversely, if the coin is rejected at this resistance level and fails to maintain its ascending support, the price could fall below the April 13 low of $0.00011. The upcoming token burn adds a layer of complexity and optimism, as reducing the supply could help overcome resistance levels and drive the price higher.
Conclusion
The approval of the token burn by the Floki DAO is a significant development for FLOKI’s future. By reducing the total supply, the burn could enhance the token’s market value and potentially signal the beginning of a new bullish phase. Investors and traders will be closely watching the price action in the coming weeks to see if the coin can break through resistance levels and achieve new highs. As always, market conditions and broader cryptocurrency trends will play a crucial role in determining FLOKI’s trajectory.