Floki’s recent price increase may be the start of a major upswing, provided holders remain strong.
- Historical data showed that similar MVRV ratios led to substantial price increases. The 1,140 addresses that bought 35.97 billion tokens at $0.00016 might provide a solid support.
AMBCrypto’s analysis revealed that Floki [FLOKI] was hovering at a spot that could bring in more hike than the recent price increase.
At press time, FLOKI changed hands at $0.00017, representing a 10.12% increase in the last 24 hours.
The reason for this prediction could be linked to the MVRV ratio. MVRV is a short form for Market Value to Realized Value.
Using the relationship between the market cap and realized cap, the metric shows the profitability of holders.
Hope remains for FLOKI
It also shows if a token is undervalued or overvalued. At press time, FLOKI’s 30-day MVRV ratio was -36.34%.
This means that the current price is notably lower than the average value holders purchased the price within a 30-day window.
As such, if they decide to sell now, they would be realizing a loss. Therefore, it is likely that most holders would refrain from selling.
Instead, the price seems to offer an opportunity to scoop at lower prices. The historical performance of the memecoin proves this bias.
For example, when FLOKI’s MVRV ratio was -18.73% in the last week of February, the price jumped from $0.000036. By the first week of March, it was trading at $0.00015.
Source: Santiment
The increase at that time was over 300% in profits for market participants. In April, the ratio dropped to -41.79%. At that time, the price was $0.00013. Weeks later, the value jumped to $0.00024.
Considering the past performances of the token in a similar situation, a further upswing could be likely. If FLOKI mirrors the historical price action, the value could go on an 100% increase within the next month.
Should this be the case, FLOKI’s price might hit $0.00034. If the market does not undergo a notable correction within the period, the memecoin might surpass its all-time high.
Support is key
To ascertain if FLOKI will be able to move toward this forecast, AMBCrypto analyzed the IOMAP. The IOMAP stands for In/Out of Money Around Price.
This considers the cluster of addresses that purchased a cryptocurrency at a certain price. So, market participants can spot resistance or support levels.
At press time, AMBCrypto observed that 1,140 addresses bought 35.97 billion FLOKI at an average price of $0.00016. At the other end, 760 addresses purchased 125.24 billion around $0.00017.
Source: IntoTheBlock
The larger number of addresses at $0.00016 could act as support for the token, thereby, preventing the price from plunging.
In addition, the potential effect of the current condition could be a price increase to $0.00019 for a start.
However, if buying pressure increases, the value of the memecoin could be higher. Should FLOKI mirror March’s performance, the price might reach $0.00034 as initially stated.
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