Flare (FLR) Price Spikes 10% — Technicals Suggest Overbought Conditions

Key Takeaways

• FLR broke out of a long-term descending wedge structure.
• Immediate resistance was found near the 0.618 Fibonacci retracement.
• On lower time frames, a healthy (A)-(B)-(C) correction is unfolding.

Flare (FLR) has recently exhibited a strong breakout following a prolonged downtrend, as seen in the higher time frame chart.

After completing a potential corrective WXY structure, FLR surged towards key Fibonacci resistance before facing rejection.

The lower time frame chart reveals a five-wave pattern completion, suggesting a local top is in place and a corrective phase could follow.

FLR is at a crucial juncture, where short-term retracements could set up the next larger move depending on market conditions.

FLR Price Analysis

The 4-hour chart shows that FLR has broken out from a descending wedge structure, formed as a corrective structure since the December high of $0.032.

The asset rallied sharply from its mid-April lows after completing a WXY correction, bouncing strongly off the $0.011 support zone.

This move carried FLR back into a critical resistance zone between $0.01979 and $0.02164, aligning with the 0.618 Fibonacci retracement of the previous major downtrend.

However, rejection from this zone, combined with an overbought Relative Strength Index (RSI) above 75, suggests that bullish momentum may be temporarily exhausted.

The price action mirrors a classic pattern of initial breakout enthusiasm being capped at key resistances.

Despite this, the broader breakout structure remains intact unless FLR falls below the $0.01705 level (0.786 retracement), which would invalidate the breakout continuation thesis.

If the support around $0.01705 holds, a consolidation above this level could prepare FLR for another attempt to break higher into the $0.02164 region.

A sustained close above $0.022 would confirm a trend reversal toward more significant upside targets.

FLR Price Prediction

The 1-hour chart provides a clearer microstructure, showing a completed five-wave advance culminating around $0.020.

A sharp reaction lower has already started, suggesting that a corrective (A)-(B)-(C) wave structure is unfolding.

The projected path expects a move down toward $0.01705 (A-wave), a brief relief rally (B-wave), and then a final decline to $0.01510 (C-wave), which also matches a horizontal support cluster.

This expected correction is healthy, especially after a strong impulsive move, as it would reset oscillators and allow new buyers to accumulate positions.

The RSI already shows a sharp cooldown after peaking into overbought territory, supporting the likelihood of further downside in the immediate term.

If the $0.01510 support zone holds, FLR would form a higher low than the April bottom, strengthening the bullish case.

This would open the door for a resumption of the uptrend, targeting the previous rejection area around $0.02164 on the next impulse wave.

However, if FLR fails to hold $0.01510 and falls deeper, the bullish breakout scenario could be delayed, and a return toward $0.013–$0.012 support would become more probable.

The next 2-3 days will be critical for confirming whether this retracement remains orderly or accelerates into a deeper selloff.

Key Levels to Watch

• Major Support: $0.01705 (0.786 Fib), $0.01510 (horizontal support), $0.01121 (macro support).
• Immediate Resistance: $0.01979 (local high), $0.02164 (0.618 Fib), $0.02200 (breakout confirmation).
• Breakout Confirmation: Sustained close above $0.022 with strong volume.
• Invalidation Level: Dropping below $0.01510 could signal deeper weakness.
• Fractal Watch Zone: $0.01705–$0.01510 range for potential bullish reversal setups.