Floki Inu (FLOKI) has seen quite some resurgence over the last two weeks or so. The coin is looking strong right now after smashing past several resistance zones. There are hopes that this could be a decisive trend reversal after weeks of decline. But how far can Floki actually go? Here are some highlights:
FLOKI had seen gains in 3 straight sessions before retreating yesterday
The coin has now added 65% in value in less than 10 days
This uptrend looks strong and is set to continue in the coming days
Data Source: TradingView
Floki Inu – Why a trend reversal is unlikely
Although all signs appear to point to the fact that Floki is reversing the trend, it’s important to note there are many risk factors that could easily suppress the price. Besides, FLOKI has fallen nearly 90% from its ATH and is on a bearish trend year on year.
While a 65% gain in 10 days is quite impressive, it is likely a result of the short-term dip-buying activity. Soon enough, Floki Inu buyers will start to lock in profits and as such, we expect the coin to retreat further. Also, from a long-term point of view, the coin continues to face increased regulatory challenges in the UK after its ads were deemed unethical.
Floki could still deliver some 2x growth in 2022. But for now, the uptrend we are seeing will slow, and the coin will decline sharply.
Why is Floki risky right now?
Most meme coins have seen major sell-offs this year. In a market filled with uncertainty, a lot of investors will obviously offload risk assets, and meme coins are in that category.
So, unless we see conditions improve in the broader crypto industry, holding FLOKI for long could be a big blunder. But there are of course many short-term plays for speculative traders.