Floki Inu Frenzy: Memecoin Eyes New Highs As Open Interest Soars

Christian Encila

1 year ago

4 mins read

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With a rise in trading activity and almost 20% price increase in the previous week, Floki Inu (FLOKI), the Shiba Inu-inspired memecoin, has shot to prominence. Experts warn, meantime, that this “pup-ularity” could be fleeting and driven more by buzz than by solid underpinnings.

Open Interest Takes Off: Newcomers Flock To FLOKI

The rising Futures Open Interest for FLOKI is the main indicator inspiring enthusiasm. Reflecting the amount of existing futures contracts, Coinglass claims that this number has skyrocketed a startling 110% since May 1st, attaining a 30-day high almost $20 million. This implies a flood of fresh market players filling FLOKI slots, maybe expecting more price rises.

The notable increase in daily trading volume of FLOKI indicates fueling of the fire. Santiment reported daily volume on May 15th that exceeded $1 billion, the highest level FLOKI had seen since late March. This strong buying behaviour points to a rise in investor interest, which drives price increases.

Momentum Indicators Point To A Bullish Charge

Moreover supporting a positive FLOKI is the behaviour of its main momentum indicators. Currently comfortably above their neutral levels, at 62.68 and 65.37 respectively, both the Relative Strength Index (RSI) and the Money Flow Index (MFI). Said another way, these indicators imply that, near term, the price momentum favours more gains.

Total crypto market cap currently at $2.3 trillion. Chart: TradingView

Moreover, the general attitude of the market towards FLOKI is really favourable. Rising social media mentions and higher trading volumes have piqued investor interest, implying that the bitcoin is becoming popular not only among ordinary investors but also among institutional ones.

Strategic developments inside the FLOKI ecosystem and recent alliances are probably going to drive more expansion. These elements, together with the strong technical indications, present a good picture for near-term performance of FLOKI, hence perhaps opening the path for significant price increase.

FLOKI price action in the last week. Source: Coingecko

Benevolent on the surface, yet, there may be grounds for worry. An indication of the buying and selling pressure of an asset, the Chaikin Money Flow (CMF) presents a somewhat negative image.

Still In Negative Zone

Though price appreciation exists, FLOKI’s CMF is solidly in negative territory and right now ranges around -0.11. This implies that the buying pressure can be declining even if the price is rising.

Many times, this difference between price and buying pressure is interpreted as evidence of a possible reversal—that is, a rally motivated more by short-term speculation than by long-term investor confidence.

Although FLOKI’s current success is definitely outstanding, the underlying causes point to a maybe explosive future. Although the increase in open interest and trade volume suggests a market frenzy, the negative CMF raises questions about the sustainability of the spike.

Featured image from Floki, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.