FLOKI rises 10% in 24 hours: Will token burn help prices further?

• FLOKI was up by more than 10% in the last 24 hours. 
• Bullish sentiment remained dominant, but indicators looked bearish. 

Floki Inu [FLOKI] has been the center of attention for quite some time now, as its price has spiked substantially.

In the meantime, the meme coin passed an important proposal that might have a large impact on its price.

FLOKI passes new proposal

The last 24 hours were flourishing for FLOKI, as its value surged. According to CoinMarketCap, the meme coin was up by more than 10% over the last day.

At the time of writing, FLOKI was trading at $0.0001427 with a market capitalization of over $1.3 billion.

While the coin’s price rose, the community voted for an important proposal, which will soon result in a burning episode of a large number of FLOKI tokens.

To be precise, 190,918,585,431.84 FLOKI tokens will be burned.

To check the worth of those tokens, we used AMBCrypto’s converter and found that those tokens were valued at over $27.5 million.

Source: AMBCrypto

As per the official proposal, the reason behind the burn is to ensure the long-term security and stability of the Floki project by removing the risks of these tokens being exploited and dumped.

The proposal was passed with over 89% of voters supporting it. Since the burn would reduce the meme coin’s circulating supply, the chances of the meme coin continuing its bull rally seemed high. 

What should you expect from FLOKI?

To check whether it had any impact on the token’s social metrics, AMBCrypto checked Santiment’s data.

We found that the meme coin’s social volume spiked in the last few days, reflecting its popularity in the crypto space.

Its Weighted Sentiment rose as well, suggesting that bullish sentiment around the meme coin had increased at press time. 

Source: Santiment

A few other metrics also looked bullish on the meme coin. Notably, the meme coin’s MVRV ratio went up sharply.

Its Network Growth also rose, meaning that more new addresses were created to transfer the token at press time. 

Source: Santiment

Realistic or not, here’s FLOKI’s market cap in BTC’s terms

AMBCrypto then took a look at FLOKI’s daily chart to better understand what to expect, and found that indicators looked bearish on the meme coin.

Notably, FLOKI’s price torched the upper limit of the Bollinger Bands. Its Relative Strength Index (RSI) was also in the overbought zone at press time — a sign of rising sell pressure, which could end the current rally.

Source: TradingView