- Historical data showed that similar MVRV ratios led to significant price increases.
- The 1,140 addresses that purchased 35.97 billion tokens at $0.00016 could provide solid support.
AMBCrypto’s analysis found that Floki (FLOKI) was fluctuating at a point that could provide stronger price increases than the recent one.
At press time, FLOKI was changing hands for $0.00017, up 10.12% in the last 24 hours.
The reason for this prediction may be related to the MVRV ratio. MVRV is short for Market Value to Realized Value.
Based on the ratio between market capitalization and realized capitalization, the indicator shows the profitability of the owners.
There is still hope for FLOKI
It also shows whether a token is undervalued or overvalued. At press time, FLOKI’s 30-day MVRV ratio was -36.34%.
This means that the current price is significantly lower than the average purchase price of the value holders within a 30-day window.
So if they decide to sell now, they would make a loss. Therefore, it is likely that most holders would refrain from selling.
Instead, the price seems to offer an opportunity to enter at lower prices. The memecoin’s historical performance proves this tendency.
For example, when FLOKI’s MVRV ratio was -18.73% in the last week of February, the price jumped from $0.000036 to $0.00015 in the first week of March.
Source: Santiment
The profit increase for market participants at that time was over 300%. In April, the ratio dropped to -41.79%. At that time, the price was 0.00013 USD. Weeks later, the value jumped to 0.00024 USD.
Considering the token’s past performance in a similar situation, another upswing could be likely. If FLOKI mirrors the historical price trend, the value could increase by 100% in the next month.
If this happens, the price of FLOKI could reach $0.00034. If the market does not experience a significant correction within this period, the memecoin could surpass its all-time high.
Support is key
To determine whether FLOKI can live up to this prediction, AMBCrypto analyzed the IOMAP. IOMAP stands for In/Out of Money Around Price.
It takes into account the group of addresses that have purchased a cryptocurrency at a certain price. This allows market participants to identify resistance or support levels.
At press time, AMBCrypto found that 1,140 addresses purchased 35.97 billion FLOKI at an average price of $0.00016. On the other end, 760 addresses purchased 125.24 billion for around $0.00017.
Source: IntoTheBlock
The larger number of addresses at $0.00016 could act as support for the token and thus prevent a price drop.
Read Floki (FLOKI) Price Prediction 2024-2025
In addition, the current situation could lead to a price increase to $0.00019 initially.
However, if buying pressure increases, the memecoin’s value could go higher. If FLOKI repeats March’s performance, the price could reach $0.00034 as originally stated.
