Following a decline from October 10–October 20, FLOW is currently making a comeback. CoinGecko reports that FLOW is performing well across nearly all time frames shown by its platform, and at the time of writing, the coin was trading at $1.76.
Along with this rise in price comes an increase in TVL value. DeFiLlama reports that since yesterday, FLOW’s TVL has increased from $3.97 million to $4.168 million, an increase of about 5%.
Market slippage was noted earlier, but the market structure produced by FLOW price changes may prevent a recovery.
Going With The Flow
The coin has created a bearish descending triangle and cup pattern as of this writing. Due to the coin’s Stoch RSI readings being in the overbought zone, this is the case. After this metric enters the overbought zone, the market immediately begins to realign and correct itself.
The current value of Chaikin’s money flow indicator is -0.06, suggesting that selling pressure is prevalent in the market. There has been a slight pick-up in momentum, as shown by the indicator. This rise may be due to the inclusion of the cup’s rebound mechanism.
Nonetheless, the RSI indicator, which displays a positive divergence at the time of writing, largely disregards these signs. This could be the moment from which the bulls can recover.
Currently, FLOW’s uptrend is maintained by the price support level at $1,601, with the current trading range between $1,398 and $1,781. With the price movement being influenced by two bearish patterns.
In light of this, we anticipate that the price of FLOW will drop dramatically during the following few days.
As evidenced by the market, FLOW is on a slippery slope. This notion is bolstered by its technicals, which indicate short- and long-term bearishness. For bulls to survive the forthcoming corrective period, they must defend the $1.398 support level of FLOW’s trading range.
However, the bulls might use the existing support at the $1.601 price level to trigger a breakout over the $1.781 resistance range. However, with the Stoch RSI at its highest level, a period of correction is inevitable, hence strengthening the resistance level.
At the current market price, investors and traders might initiate a short position in preparation of the forthcoming corrective phase.
FLOW total market cap at $1.89 billion on the weekend chart | Featured image from Freepik, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.