After a drop from October 10th to October 20th, Flow is currently making a comeback. CoinGecko reports that Flow Its platform has been performing well in almost all the time frames shown, and at the time of writing, the coin was trading at $1.76.
With this increase in price comes an increase in TVL value. daphylama reports That since yesterday, Flow’s TVL has increased from $3.97 million to $4.168 million, an increase of approximately 5%.
Market downturns were noted previously, but the market structure produced by flow price changes could prevent a recovery.
going with the flow
The coin has formed a bearish descending triangle and cup pattern as of this writing. This is the case, as the Stoch RSI reading of the coin is in the overbought zone. After this metric enters the overbought zone, the market immediately begins to regroup and correct itself.
Chaikin’s Money Flow Indicator has a current value of -0.06, which indicates that selling pressure is prevailing in the market. As shown by the indicator, there is a slight increase in momentum. This increase may be due to the induction of the rebound mechanism of the cup.
Nonetheless, the RSI indicator, which exhibits a positive divergence at the time of writing, largely ignores these signals. This may be the moment from which the bulls can recover.
Currently, the uptrend of FLOW is maintained by the price support at $1,601, with the current trading range lying 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 decline dramatically in the coming days.
As the market shows, the flow is on a slippery slope. This sentiment is supported by its technicalities, which indicate a bearish short and long term. For the bulls to survive the upcoming correctional period, they must defend the $1.398 support level of the FLOW trading range.
However, the bulls can use the existing support at the $1.601 price level to trigger a breakout at the $1.781 resistance range. However, at Stoch RSI highs, a correction period is inevitable, hence the strengthening of the resistance level.
At the current market price, investors and traders can initiate short positions to prepare for the upcoming 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.