A widely followed crypto strategist says that a deep drawdown may be in sight for a scorching-hot memecoin.
Analyst Michaël van de Poppe tells his 720,500 followers on the social media platform X that Floki (FLOKI) may see a severe correction after rallying by more than 13x in just a few months.
“It’s up 1,200% since the start of this run and made a liquidity sweep above the previous high. The risk of a heavy correction is higher than a continuation upward. Interested only after a 30-40% correction, but not here.”
A 40% correction from the highs will take Floki down to $0.0002. At time of writing, Floki is worth $0.000265, down over 5% in the past day.
Turning to the smart contract protocol Fantom (FTM), Van de Poppe thinks the altcoin is poised to revisit support at $0.50.
“Continuously making lower highs and lower lows. It’s tested the $0.60 support multiple times, and a breakdown seems likely. In that case, I have two areas of interest for swing trading in the coming period.”
At time of writing, FTM is trading for $0.674, down nearly 3% in the last 24 hours.
The last altcoin on the trader’s radar is fellow layer-1 protocol Sui (SUI). Van de Poppe sees SUI rallying by almost 40% if it takes out its immediate resistance at $1.17.
“SUI is one of the strongest performers in the markets. It made a higher low and is looking for continuation towards $1.60 if the momentum is providing a breakout above $1.17.”
At time of writing, SUI is trading at $1.04, down nearly 5% on the day.
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