FLOKI’s Surge: Organic Growth or Just Another Meme Coin Bubble?

Dogecoin’s rowdy cousin FLOKI is making headlines again—but this time, it’s not just shiba inu memes fueling the pump. The token’s 300% monthly gain has traders split: is this a legit demand spike or another case of ‘buy the rumor, sell the news’?

Breaking down the metrics: On-chain data shows whale accumulation, while exchange reserves tighten—classic bullish signals. Yet skeptics point to the 80% retracement after last year’s ATH as proof this is hype-driven volatility. (Bonus jab: At least it’s not another ‘utility token’ pretending to solve world hunger.)

The verdict? FLOKI’s got more legs than your average meme coin… but in crypto, even the best narratives eventually face the music when liquidity dries up.

Development activity spikes — Renewed focus?

FLOKI’s development activity has sharply increased after months of dormancy. As of press time, the development activity metric hit 1.67, marking the highest level in months. 

This suggested that the team may be actively building or preparing to roll out new features or upgrades.

Historically, such spikes in development activity precede network announcements or integrations, further energizing market sentiment. 

Therefore, this renewed technical progress may provide additional narrative support for FLOKI’s current price rally.

Source: Santiment

Valuation metrics flash early warning signs

FLOKI’s MVRV Z-score was 1.01 at press time, crossing back into the profitable territory for average holders. This marked a notable recovery from sub-zero values in April, when long-term holders were largely underwater. 

A rising MVRV indicates that recent buyers are beginning to see gains, which can fuel continued confidence. 

However, this also brings a risk of profit-taking if the metric climbs too high, so monitoring its trend remains essential to assessing sustainability.

Source: Santiment

Despite the bullish rally, the NVT ratio has soared to 617.98, suggesting that network value is far exceeding actual transaction volume.

Such a high ratio often signals overvaluation or speculative froth rather than organic utility growth. 

If value transfer fails to catch up with the rising price, this could lead to corrections.

Therefore, while investors are clearly optimistic, a cooldown or consolidation may be necessary to reset valuation metrics and restore equilibrium.

FLOKI eyes higher technical targets

AMBCrypto’s look at the liquidation heatmap revealed that FLOKI broke above a cluster of short positions concentrated between $0.000095 and $0.000098.

This breach likely triggered a cascade of liquidations, accelerating the upward move. 

With the current price hovering above $0.000104, additional liquidations may occur if bullish momentum sustains.

These squeeze-driven rallies are often short-lived unless backed by strong demand, so observing follow-through volume will be crucial in the next few days.

Source: Coinglass

The price, having surpassed the 2.618 Fib extension ($0.00009144), now targeted the 3.618 and 4.236 extensions at $0.00011009 and $0.00011583, respectively. 

The RSI was at 73.86, which placedFLOKI in overbought territory at press time. This signaled strong momentum but also calls for caution, as price may consolidate or retrace slightly before a potential continuation. 

A clean break above $0.00011009 WOULD reinforce bullish strength and validate these higher targets.

Source: TradingView

Can FLOKI extend its rally?

FLOKI’s surge is currently supported by whale accumulation, rising development activity, and a significant increase in leveraged positioning.

However, the elevated NVT ratio and overbought RSI highlight potential near-term risks. 

If price maintains momentum above $0.00011009 and fundamental metrics like transaction volume improve, the rally could extend toward the $0.00011583 mark. 

Sustainability will depend on continued network engagement and whether short-term speculators take profits or double down.