Following a decline from October 10–October 20, FLOW is currently making a comeback. CoinGecko says FLOW is doing well in almost every time frame that its platform shows. The coin trades at $1.76 at the time this article was written.
With this price increase comes an increase of 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%.
While market slippage was previously noted, FLOW price movements may have impacted the market structure and prevented a recovery.
Go with the flow
At the time of writing, the bearish-looking triangle and cup patterns have been formed by this coin. Due to the coin’s Stoch RSI readings being in the overbought zone, this is the case. Once this metric is in the overbought region, the market begins to realign or correct itself immediately.
The current value of Chaikin’s money flow indicator is -0.06, suggesting that selling pressure is prevalent in the market. The indicator shows a slight increase in momentum. This rise may be due to the inclusion of the cup’s rebound mechanism.
Chart from TradingView
Nevertheless, the RSI indicator ignores this sign, even though it displays a positive divergence as of the writing. This is the point where bulls could 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. The price movement is influenced by two bearish pattern.
FLOW is expected to drop in price dramatically over the next few days.
The Downward Current
FLOW has been on a steep slope, as evidenced by its market. FLOW’s technicals support this notion, as they indicate both 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, the Stoch RSI being at its highest, a correction is expected, which strengthens the resistance.
Investors and traders may take a position at the market price to prepare for the next corrective phase.
FLOW market capital at $1.89 Billion on Weekend Chart | Featured image from Freepik, Chart: TradingView.com Disclaimer: This analysis is the author's opinion and should not necessarily be considered investment advice.
