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Joel Frank
Author
Joel Frank
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Following Iran’s missile strike on Israel on Tuesday, the price of Floki Inu (FLOKI) plunged 10% as risk-off sentiment spread across the crypto market by Wednesday, October 2.
The Floki price has since stabilized in the mid-$0.00013s, just above its 50-day moving average (DMA), offering bulls hope that the market’s bullish momentum from early September could remain intact.
However, FLOKI has dropped 22% from last week’s highs in the $0.00017s, when it was testing its 200DMA.
Floki Price Prediction: Market Meltdown Inbound?
Despite this temporary stabilization, the Floki price looks vulnerable to further downside.
Meme coins, due to their speculative nature and limited utility beyond community support, are often the first to be sold during times of market risk.
With ongoing geopolitical tensions, particularly the threat of an Israeli military response to Iran’s missile strike, investors remain cautious.
Polymarket bettors currently place a 34% chance that Israel responds militarily before Friday, which could drag in major global powers and disrupt oil supplies.
Such uncertainties may weigh heavily on the crypto market, with FLOKI particularly at risk.
Technical analysis shows FLOKI holding above its 50DMA, but bears are eyeing a potential breakdown below the uptrend from the August lows of $0.000097.
If Israel launches a significant strike against Iran, this bearish breakout could push the Floki price down to its previous lows.
Global Markets and Floki’s Price: A Fragile Balance
One potential Israeli strategy could involve targeting Iran’s oil and gas industry, which could lead to a spike in global energy prices.
A sharp rise in oil prices would complicate the global inflation picture, with central banks like the Federal Reserve having recently eased interest rates in response to lower inflation pressures.
Any disruption to oil production, especially through the Strait of Hormuz, could severely impact Saudi Arabian oil supplies, leading to further economic turmoil.
The impact on global markets, and the Floki price, could be profound.
If this scenario unfolds, investors in meme coins like FLOKI may panic and dump their holdings, further exacerbating the downturn.
Better Crypto Alternatives to Consider
During times of market uncertainty, investors tend to move towards projects with more concrete utility.
While Floki and similar meme coins remain highly speculative, some newer meme coins are attempting to provide additional value.
One such project is Crypto All-stars (STARS), which has gained attention for its upcoming multi-chain MemeVault.
Crypto All-stars, currently in its presale stage, allows holders of major meme coins to stake their tokens in exchange for a STARS yield.
Since presales avoid price volatility, some investors consider them a safer bet during turbulent times.
Once the MemeVault is operational, it could provide consistent passive income, regardless of broader market conditions.
Though geopolitical tensions may dominate the short-term narrative, STARS could emerge as a strong performer due to its yield-generating mechanics.
Investors interested in STARS should act quickly before its presale concludes, with the project having raised nearly $2 million in a short span.
Cryptonews.com’s in-house analyst Crypto Chester explains in the below video why STARS has potential.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
