Floki forms death cross as weekly burn rate hits 610m

Floki , a meme coin inspired by Elon Musk’s pet dog “Floki,” retreated sharply in January and formed a death cross pattern, risking more downside in February.

Floki (FLOKI) dropped to a low of $0.0001135 in January, its lowest level since August last year. It was down by over 53% from its highest level in November.

Floki’s decline was in line with the performance of other meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE).

The crash also occurred in a month when Floki incinerated more than 5.8 trillion coins. In the last three months, it has burned 2.46 billion tokens worth $330,000, and in the last twelve months, it has burned 100.9 million.

Since its inception in 2021, Floki has burned 5.87 trillion coins, leaving those in circulation at 4.1 trillion. These burns happen when tokens are moved into an address that cannot be accessed. Their aim is to reduce the number of coins in circulation and boost their value. 

Floki also dropped despite some important ecosystem news. For example, the token was added into Coinbase, making it available to residents in New York. Coinbase also availed meme coins like Gigachad and Turbo to New York residents.

Additionally, as shown below, two Floki whales continued to buy the dip as the coin fell. The second-biggest Floki holder bought an additional 214 million tokens, while another one acquired 253 million.

The next key price catalyst for Floki will be the upcoming Valhalla launch on the mainnet.

Valhalla is a play-to-earn game with over $43 million in treasury that will power its play-to-earn economy. Its goal is to increase the use of Floki as it transitions from a meme coin to a utility coin.

Floki price analysis

The daily chart shows that the Floki price formed a double-top pattern at $0.0002840 in November and December. This is a highly bearish pattern made up of two peaks and a neckline, which is at $0.0002050. 

Floki’s other bearish pattern, a death cross, occurred when the 200-day and 50-day moving averages crossed each other. It has also formed a series of lower lows and lower highs.

Therefore, more downside will be confirmed if the Floki price crashes below the key support at $0.0001135. This is a noteworthy price since it was its lowest point since July last year.