- The statement seemed to have triggered positive sentiment around FLOKI.
- A key metric flashed a buy signal, suggesting that FLOKI’s price could be set to hit $0.000030.
Floki [FLOKI] is in the news again, and this time, it could be for the right things holders can think of. On the 4th of June, the Floki development team announced that market maker DWF Labs has agreed to purchase $12 million in FLOKI tokens.
For context, market makers are individuals or entities that provide liquidity for projects or exchanges. According to the disclosure, the purchase would be geared at supporting the Floki ecosystem at large. The Medium post read,
“This strategic purchase is aimed at further strengthening Floki’s position in the industry, especially in what is poised to be one of Floki’s most pivotal years ever due to the impending release of several key products.”
However, this was not the first time DWF Labs was helping the token to boost its adoption. In February, the market maker committed $10 million to the memecoin.
New money, higher market cap?
Between that time and the time of writing, FLOKI’s price has increased by 69.13%, suggesting that the injection of liquidity had a good impact on the token’s value.
Apart from that, the FLOKI team development released a trading bot last week, suggesting that it was committed to improving the utility on the network. At press time, the price of the cryptocurrency was $0.00026.
This was a 5.60% decrease in the last 24 hours. However, with the latest announcement, FLOKI might begin to walk its way up in what it referred to as the “most explosive bull run.”
Source: CoinMarketCap
There have also been predictions that FLOKI could hit a $10 billion market cap this cycle. As of this writing, the market cap was $2.53 billion as shown above.
Therefore, if the metric hit such level, the memecoin’s price could be worth $0.0010.
It is time to set entries
In terms of the Weighted Sentiment, AMBCrypto observed that it was -0.119. This implies that there were more negative comments about the project that positive ones.
However, one thing we noticed that the perception was getting better suggesting that demand for FLOKI might begin to increase. Another metric supporting this upswing was the Mean Coin Age (MCA).
Source: Santiment
At press time, the 90-day MCA had decreased. Before now, FLOKI had high coin-age activity which meant that old tokens were moving into exchanges. This was one of the reasons the price plunged.
But the decreasing metric implies that many holders are retiring their tokens into self-custody. As such, FLOKI might not experience a wave of selling pressure. To evaluate if it could be a good time to buy FLOKI, AMBCrypto looked at the price-DAA divergence.
DAA stands for Daily Active Addresses. So, the metric combines the relationship between network activity and price to predict entry and exit points.
Source: Santiment
Realistic or not, here’s FLOKI’s market cap in DOGE terms
As of this writing, the price-DAA divergence was -1083%, indicating that the price grew more than the active addresses.
This is a strong buy signal with evidence from the surge in February when FLOKI rallied to $0.00030.