Is It The Right Time to Buy FLOKI After Its Tokenization Platform Launch?

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NEW DELHI (CoinChapter.com) — Floki Inu (FLOKI) has launched a crypto and asset tokenization platform called TokenFi. With the launch, the memecoin team aims to “capitalize on the trillion-dollar tokenization industry.”

Asset tokenization refers to the process in which ownership rights of an asset are presented as digital tokens and stored on a blockchain. Floki Inu stated in its announcement that the nascent sector might become a $16 trillion industry by 2030.

The Birb Nest’s Adrian Zduńczyk claimed Floki Inu’s tokenization project was “a big step” towards leveraging the fledgling sector. Zduńczyk especially highlighted the tokenization of real-world assets as the key to the project’s success.

The Birb Nest is a crypto-education platform.

TokenFi aims to simplify the tokenization process and plans to become the “foremost tokenization platform in the world,” per the announcement.

The TokenFi project will have a maximum supply of 10 billion tokens, split equally across the Binance Smart Chain and Ethereum. The launch market cap for the project will be $50,000 circulating and $500,000 diluted.

Furthermore, the Floki Inu team will add 10% of the TokenFi supply to liquidity pools on Uniswap and PancakeSwap to allow trade. Additionally, FLOKI stakers would earn 56% of the TOKEN supply over four years.

As such, the launch would likely act as a bullish cue for FLOKI’s price.

Despite the bullish news, the FLOKI price rally halted on Oct. 27, dropping nearly 17% to form a daily low near $0.0000353.

The memecoin’s price likely succumbed to profit booking as traders moved to capitalize from FLOKI’s recent seven-day-long bullrun, which raised FLOKI’s price to its highest level since May 2023.

However, the memecoin started gaining again on Oct. 28, rising nearly 10% to reach a daily high near $0.0000374. Floki Inu’s bullish rally has likely resulted from market hype, with a recovering crypto market buoying all tokens.

FLOKI’s price action resulted in the token’s 50-day EMA (the purple wave) needling above its 100-day EMA (the blue wave) to form a bullish technical pattern called the ‘Golden Cross.’

However, the RSI for FLOKI remained overbought, clocking a score of 78.3 on the daily charts. Overbought RSI levels have historically preceded a reversal or consolidation phase for assets, so traders consider the occurrence a bearish signal.

If bears continue selling, the FLOKI price might drop to the support near $0.0000315. Moreover, breaching the immediate support might force bulls to defend the 20-day EMA (the red wave) support near $0.0000256.

A confirmed break below the immediate support could see traders shorting FLOKI prices, with $0.00000256 as the target.

Conversely, if bulls start a rally, the FLOKI price would face resistance near $0.00004. Breaking and consolidating above the immediate resistance could help the Floki Inu token price target the resistance near $0.0000443 while allowing traders to open long positions after a clean breakout.

Another bearish cue for the Floki Inu token comes from a technical pattern called the ‘Descending Triangle.’

A descending trendline connecting swing highs and a horizontal trendline joining swing lows form the pattern. The height of the triangle’s thickest section determines the price target in a descending triangle setup.

As such, FLOKI’s price could drop nearly 89% to reach the projected price target near $0.000004. Practice caution when planning to buy FLOKI.

A Delhi-based Markets writer, I did my bachelor's in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.

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