The rise in the price of <a href="https://en.coin-turk.com/significant-market-evaluations-in-crypto-is-it-time-to-buy-bitcoin-and-altcoins/”>Bitcoin up to $35,000 this week has helped many altcoins gain value. Especially during rally periods, the focus turns to memecoin projects, and many projects have seen an uptrend this week, led by Floki (FLOKI). With these upward journeys, competition in memecoin projects has increased again. Let’s take a closer look at what’s happening in memecoin projects.
Why is FLOKI Rising?
On October 27th, FLOKI experienced an increase of over 140% and rose to $0.00004261, the highest level in the past five months. The memecoin, which attracts attention with its marketing tactics, saw a surge after Grayscale Investments, based in New York, applied for a new spot Bitcoin exchange-traded fund (ETF) on NYSE Arca.
In the past 24 hours, FLOKI’s gains received support with the release of TOKEN by TokenFi on October 27th. Allowing users to stake their FLOKI assets to purchase TOKEN played a significant role in this surge.
FLOKI’s ongoing price rally has brought its daily relative strength index (RSI) to its most overbought level since January 2023. Overbought RSI levels generally precede a correction period. FLOKI’s previous overbought RSI levels have led to significant corrections, increasing the likelihood of a correction this time as well.
What’s Happening in the Memecoin Market?
In 2023, almost all memecoin projects yielded less than top-ranked cryptocurrency assets like Bitcoin, and some projects even experienced losses year-to-date (YTD). For example, the most valuable memecoin project, Dogecoin, has risen by 30% since the Grayscale Bitcoin ETF announcement on October 19th. However, as of October 27th, its YTD return remained at only 1.3% compared to BTC’s 105% gain during the same period.
An exception to this situation in memecoin projects is Pepecoin. Since its launch in April 2023, the project, which has risen by over 500%, is followed by FLOKI, which has a YTD return of 425% as of October 27th.
Crypto speculators often show a great interest in memecoin projects during times when risk sensitivity is strong in the crypto space to achieve maximum returns in minimum time. For example, during the crypto bull market from 2020 to 2021, Dogecoin rose to as high as 67,475% compared to Bitcoin’s 1,700% gain.
