The State of Memecoins: Analyst Warns of Deep Drawdown for Floki
With the recent surge in popularity of memecoins, one particular coin, Floki (FLOKI), has caught the attention of many investors. However, not all is rosy for this scorching-hot token, as analyst Michaël van de Poppe warns of a potential deep drawdown.
Van de Poppe, who commands a significant following on social media, believes that Floki may be due for a severe correction after its impressive rally of over 13x in just a few months. He cautions his followers, stating, “It’s up 1,200% since the start of this run and made a liquidity sweep above the previous high. The risk of a heavy correction is higher than a continuation upward. Interested only after a 30-40% correction, but not here.”
If a 40% correction were to occur, Floki could drop to $0.0002, significantly lower than its current value of $0.000265. The market sentiment seems to be turning, with Floki down over 5% in the past day.
While Floki faces turbulence, the smart contract protocol Fantom (FTM) is also under Van de Poppe’s scrutiny. The analyst predicts that FTM may revisit support at $0.50. He explains, “Continuously making lower highs and lower lows. It’s tested the $0.60 support multiple times, and a breakdown seems likely. In that case, I have two areas of interest for swing trading in the coming period.”
At the time of writing, FTM is trading at $0.674, down nearly 3% in the last 24 hours. However, the spotlight isn’t just on FTM and Floki; another altcoin, Sui (SUI), has caught Van de Poppe’s attention. He believes that SUI could rally by almost 40% if it breaks its immediate resistance at $1.17. According to him, “SUI is one of the strongest performers in the markets. It made a higher low and is looking for continuation towards $1.60 if the momentum is providing a breakout above $1.17.”
As for SUI, it is currently trading at $1.04, down nearly 5% on the day. While these altcoins experience fluctuations, it’s essential to stay informed to make informed investment decisions.
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Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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