FLOKI Price Surge at Risk Amid Strong Correlation with Shiba Inu [SHIB]

• Recent data indicates a strong correlation between Floki Inu (FLOKI) and Shiba Inu (SHIB), suggesting impending price corrections.
• FLOKI’s supply on exchanges has surged to 5 billion tokens, raising concerns that recent gains may be reversed.
• According to IntoTheBlock, the 30-day correlation between FLOKI and SHIB is an impressive 0.96, underscoring their synchronized price movements.

Discover the intricate dynamics between Floki Inu and Shiba Inu as their prices display near-perfect alignment, influencing potential market corrections.

FLOKI and SHIB: A Synchronized Price Movement

Floki Inu (FLOKI) and Shiba Inu (SHIB) have exhibited a nearly perfect correlation over the past 30 days, with a remarkable 0.96 correlation coefficient, according to data from IntoTheBlock. This metric spans a range from -1 to +1, where readings closer to +1 suggest that the price movements of these tokens are almost identical.

Price Performance Insights

At the time of analysis, FLOKI’s price stood at $0.00014, marking a 5.84% increase over the previous 24 hours. Conversely, SHIB was trading at $0.000015, experiencing a more substantial rise of 15.22%. This close correlation implies that FLOKI may track SHIB’s price movements closely. Should SHIB’s upward trend continue, FLOKI might follow suit; if SHIB declines, a similar fate could befall FLOKI.

However, the sustainability of these hikes remains doubtful when observing other ecosystem factors. A primary concern is the declining number of active addresses, which serves as an indicator of market participation.

The Role of Active Addresses

Active addresses denote the number of unique users conducting transactions within a specified period. For FLOKI, this figure has dwindled to 432 in the past 24 hours, while SHIB saw a drop to 3511. A decrease in active addresses generally signifies waning interest and reduced demand for the tokens, potentially forewarning a price decline.

Exchange Supply and its Implications

Another critical metric is the supply on exchanges, which measures the volume of tokens held in exchange wallets. An increase in this figure often indicates that holders are more inclined to sell their tokens. FLOKI’s supply on exchanges has recently reached 5 billion tokens, a significant uptick from previous levels, which could exert downward pressure on its market value.

Potential Price Risks

Given these metrics, the outlook for both FLOKI and SHIB appears precarious. FLOKI’s supply surge on exchanges suggests a looming sell-off, potentially driving its price down to around $0.00012. With SHIB’s strong correlation to FLOKI, it is likely to face similar challenges, mirroring any downward trend experienced by FLOKI.

Conclusion

The interplay between Floki Inu and Shiba Inu highlights a significant interconnection within the crypto market, with their near-identical price movements making them a focal point for investors. However, declining active addresses and increased exchange supplies signal potential volatility. Stakeholders should closely monitor these indicators to navigate the market effectively, staying alert to any developments that might impact the valuation of these correlated tokens.