The meme coin era continues to look bleak this year with the Floki Inu price continuing to drop in the markets. This month, the meme coin is down 34 per cent, extending a streak of losing months which saw it lose 37 per cent of its value in May and 52 per cent in April. In 2022, there has not been a single month that the price of Inu has closed higher than the opening price. The year-to-date data also shows that the crypto has lost 93 per cent of its value.
What is Happening to Floki Inu?
Since Floki Inu hit its all-time price high of $0.0003437 on November 4, 2021, the prices have fallen by 98.3 per cent. Despite efforts by the platform to revive the project, the current downward trend has continued with intensity in the past 8 months, and the meme coin is almost worthless now.
Part of the reason for the fall of the Floki Inu crypto is on how the meme coin economy works. These types of cryptos do not have value on their own and derive their pricing from traction and how much they are being traded. They also do not have utility, therefore their long-term prospects are mostly ambiguous.
However, during their peak, they are able to rise quickly. For instance, from August 9, 2021, when Floki Inu was trading at $0.00000002 to November 4, when it was trading at $0.0003437, Floki Inu was able to rise by more than 17000 times. That is a price gain of 1,700,000 per cent in just a few months. Therefore such cryptocurrencies have continually remained popular with people looking to make quick gains in the cryptocurrency markets.
The problem is that the growth is unsustainable. Therefore, at some point, people have to cash out their earnings. This is the process that brings the whole pyramid down and results in prices of these meme coins dropping by over 98 per cent, as can be seen in Floki Inu.
Floki Inu Price Prediction
Having looked at why the price of Floki Inu is dropping below, it is no surprise that my prediction for the crypto is a downward trend. There is a high likelihood that we will see the prices trading below the 0.00000500 support level.
In my opinion, the long-term trend of the Floki Inu, regardless of the few bullish signals it gives along the way, will mostly remain bearish. There is a high likelihood that the current setup is also a trigger for another aggressive bearish move.