Strong development tools will be required if you want your protocol to spread in DeFi or dApps. And that’s exactly what L1 blockchain Flow accomplished not long ago, as reported on their company’s official Twitter page.
DZone, the developer community, provided detailed explanations of these tools in a blog post dated October 18, 2008.
The recent showing of strength could be directly connected to this shift.
🛠 @DZoneIncGet the tools you need to create Flow or our smart contract language Cadence.
🧰CLIs. IDE extensions. Client libraries. Local networks.
🌊Comparison of Ethereum tools and Flow toolsLearn more 👉 https://t.co/OFmIfhREiC pic.twitter.com/GPVXLq11nv
— Flow (@flow_blockchain) October 19, 2022
This Metric Could Have Some Problems
Recently collected data indicates an increase in the amount of blocks that are being created for Flow. It is encouraging to see that people are making the most of what they have and building dApps over Flow.
This may be taken as a positive sign by traders or investors.
However, their native token’s value has plunged by 17.49% in just 16 days.
Coingecko also records weekly, biweekly and monthly value reductions.
FLOW attempted to rally back in October 17, 18 and was unsuccessful at raising $1.580. However, FLOW’s CMF indicates that there are buyers.
The latest developments in Flow on-chain may mean that traders and investors could have a more difficult route.
Are you going to let the Flow continue downstream or ascend?
Although Chaikin’s money flow indicator favors bulls, negative RSI and momentum readings nullify this advantage.
FLOW will likely fall below the $1.345 Fibonacci level of 78.60% Fibonacci Retracement, as the token has been under intense selling pressure.
The price action in the past was consistent with a bearish flag-and-pole formation. This will limit any short-term gains. The token currently tests the lower end of its trading range at $1,406.
With the token’s present bearish momentum, we can expect it to reach a descent as low as the 100 Fibonacci retracement level ($1.222).
However, like what has been stated before, it is an indicator of stability for long-term investors.
Eventually, demand for FLOW will increase as the network’s blockchain grows and as developers add more and more tools for greater connectivity between the blockchain and decentralized applications (dApps).
The dip could spark a rally over the next few weeks. In the meantime, investors in flow may buy dips to create a temporary price rise.
Featured image from The Market Periodical, Chart: TradingView.com| Featured image from The Market Periodical, Chart: TradingView.com Disclaimer: This analysis should not be taken as investment advice.