FLOKI: As demand dwindles, can new development thwart negative sentiment

• Shiba Inu-themed memecoin Floki has partnered with World Table Tennis (WTT).
• As negative sentiment against FLOKI thrives, its price might experience a further decline.

Amid stagnated demand for its utility token, dog-themed memecoin Floki Inu [FLOKI] has announced a partnership with World Table Tennis (WTT), the commercial, and the events arm of the International Table Tennis Federation (ITTF).

#Floki has formed a strategic partnership with ITTF World Table Tennis (WTT) that will introduce the Floki brand to over 500 million people from all over the world as official sponsor of the ITTF World Table Tennis Championships Finals. pic.twitter.com/YfVbMUIpJk

— FLOKI (@RealFlokiInu) May 11, 2023

The partnership will see Floki Inu become the official cryptocurrency partner of WTT ahead of the ITTF World Table Tennis Championships Finals 2023, and will be integrated into WTT’s marketing and promotional activities for the event.

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According to Floki, the partnership with WTT is a strategic one that “will introduce the Floki brand to over 500 million people.”

FLOKI: A tale of stalled demand, decreased whale activity, and reduced Open Interest 

The month so far has been marked by a decline in FLOKI’s price. After exchanging hands at a high of $0.000053 on 5 May, the token’s price has since posted a double-digit decline of 34%. According to data from CoinMarketCap, the 98th largest crypto asset traded at $0.00003514 at press time.

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An assessment of the token’s on-chain performance revealed a stagnation in new demand in the last month. The count of new addresses that traded FLOKI during that period, assessed on a 30-day average, saw no growth, per data from Santiment. 

Source: Santiment

In addition, FLOKI whales refused to accumulate the token as their count remained the same in the last 30 days, while the alt’s price fluctuated. A close correlation exists between whale activity and an asset’s price performance.

For as long as FLOKI whales refuse to fill their bags, one might expect the token’s price to experience an even further decline. 

Source: Santiment

Further, the alt’s Open Interest began its downward progression when FLOKI fell from its 5 May high. According to data from Coinglass, the token’s Open Interest has since fallen from $11.36 million to $6.73 million at press time. This represented a 41% decrease in just eight days.

A fall in an asset’s Open Interest accompanied by a decline in trading volume and negative investor sentiment (as is the case here) indicates a lack of investors’ interest in that particular asset. This often precedes a significant drop in an asset’s value. 

Source: Coinglass