Elon Musk's statement "FLOKI is the CEO of X" caused the FLOKI price to soar by 30%!

A single X post caused Floki's market capitalization to instantly rise by 140 million USD. The world of Meme coins is never short of miracles.

“Floki returns to the CEO position of X!” On October 20, Elon Musk shared an AI-generated video on social media, in which his Shiba Inu Floki is humorously referred to as the CEO of the social media site.

It's just these simple few words that instantly stirred up waves in the cryptocurrency market. The Ethereum-based meme coin Floki (FLOKI) saw a big pump of nearly 27% in just a few hours, with its market capitalization soaring from 660 million dollars to over 800 million dollars, and a single-day peak rise even reaching 30%.

01 The Musk Effect Reappears

This is not the first time Musk has influenced the price of FLOKI through a tweet.

In 2023, when he resigned as CEO of Twitter (now renamed X), he jokingly announced that Floki was the new CEO of the company, which prompted a 146% rise in Floki's market capitalization, reaching 557 million dollars.

History is always astonishingly similar, yet not entirely the same.

The tweet that propelled the price of FLOKI to soar showcased an AI-generated video created by Musk's new Grok feature, in which a Shiba Inu says, “Numbers, numbers, numbers, does this work? Yay.”

Musk is known for his comments driving the value of Dogecoin, but his past posts on social media have also influenced Floki multiple times.

02 The market reacts strongly

With the release of Musk's tweet, FLOKI quickly became the focus of the cryptocurrency market.

According to data, FLOKI's trading volume surged by 802% after the news was released, reaching $540 million. This dramatic increase in trading activity reflects the market's immediate reaction to Musk's tweet.

At the same time, FLOKI's market capitalization has also surpassed 830 million USD, reaching its highest level since October 10.

Meme coin commentator “Bonk Guy” expressed optimism on the X platform:

“How much did FLOKI rise after Elon did that last time? If I remember correctly, he crazily posted several tweets and memes about 'Floki as CEO of X' afterwards.”

Market data shows that FLOKI jumped to become the leader among the top 100 cryptocurrencies after Musk's tweet, indicating that despite its large market capitalization, Musk's influence can still drive significant price fluctuations.

03 Negative funding rates indicate market divergence

Behind the phenomenon of the FLOKI price big pump, there lies an interesting market dynamic.

According to the data, the funding rate of FLOKI on the Binance platform has turned into a severe negative value. This means that short sellers are paying a premium to maintain their positions, which usually occurs when there is a divergence between market sentiment and price trends.

Some market analysts believe that in this scenario, if the price of FLOKI continues to rise, it could trigger a “short squeeze,” forcing holders of short positions to buy back FLOKI to close their positions, thereby further accelerating the price rise.

This market structure adds a layer of complexity and potential risk to the current FLOKI price trend, but also provides additional rise catalysts.

04 Technical Structure Shows Breakthrough Potential

From a technical analysis perspective, FLOKI's price chart presents a bullish technical pattern.

The three-day price chart of FLOKI shows a descending wedge pattern, which often indicates a potential for more intense upward fluctuations in the future. Currently, FLOKI's price is trading around $0.0000829, with the MACD line slightly below zero but the histogram tightening, confirming that buyers are regaining control.

Technical analysts are paying attention to several key price levels.

On the upside, if FLOKI can decisively break through the key resistance level of $0.000115, it may open up space for a further rise to $0.00011 or even $0.00037.

On the downside, the key support is located in the $0.000064 area, which is a strong demand zone that coincides with the lower boundary of the 15-month ascending channel.

05 The Reality and Challenges of Meme Coins

Despite the dramatic fluctuations in FLOKI prices triggered by Musk's tweets, some market observers have pointed out that Musk's influence in the cryptocurrency space may have weakened compared to past market cycles.

Traders recalled that in previous market cycles, Musk's comments could easily lead to a 10x rise in tokens.

Nowadays, although the same tweets can still trigger significant fluctuations, the extent of their impact has changed.

This reflects a fundamental characteristic of the Meme coin market: prices are primarily driven by emotions and narratives, rather than fundamental value.

As a meme coin, FLOKI's value largely depends on community enthusiasm and social media attention, which makes it highly susceptible to the influence of celebrity tweets and changes in market sentiment.

Future Outlook

As the price of FLOKI forms a double bottom reversal pattern at the key demand area of $0.000064, technical analysts are closely monitoring the historical key level of $0.000115.

If it can successfully break through this resistance level, it may pave the way for the FLOKI price to retest the historical high of $0.00035.

The cryptocurrency market is always full of uncertainty, but for Meme coins, the only thing that can be certain is that the next celebrity post could change everything at any moment.