Flow Rallies 7% Despite Market Decline: Is a Breakout on the Horizon?

Key Takeaways

• Bitcoin drops 5.4%, market largely bearish.
• FLOW gains 48%, hits $0.70, ascending triangle forms.
• Potential breakout or rejection near $0.70 resistance.

The cryptocurrency market is primarily bearish today, with the price of Bitcoin falling by 5.4% since yesterday’s high. Despite the market slump, the price of Flow (FLOW) increased and is among the few in the top 100 in the green. 

Since its July 5 low, we saw an increase of 48%, measured to today’s high of $0.70, and the formation of an ascending triangle whose apex the price reached today. With this in mind, will we see a breakout above as buyers maintain pressure? 

FLOW Price Analysis 

On March 13, FLOW made its yearly high of $1.70 and began a long-lasting downtrend. It decreased by 72%, measured to its July 5 low of $0.47. As it reached the oversold zone, indicated by the 4-hour chart, RSI saw a reversal. 

FLOW broke above the descending triangle and formed an ascending one, surpassing its June consolidation phase. It appears it encountered resistance below $0.70 as it attempted to spike upward on July 24 but quickly fell and moved sideways. 

We can see either a rejection in this area or a breakout above, leading to a higher momentum rise. Rejection is a likely outcome due to a bearish divergence between the technical and price indicators. 

Since July 15, MACD and RSI have been showing a downtrend while the price has continued to climb slowly. This usually means the price is losing momentum and is an early sign of a reversal. 

Zooming into the hourly chart and analyzing the wave structure, we can see that from July 5, FLOW likely ended its first five-wave pattern. If true, it formed two sub-waves from the potential ABC correction. 

In this scenario, a rejection will cause another downfall to the 0.618 Fibonacci level at $0.57, concluding FLOW’s corrective stage. After it ends and establishes a higher low, we can see a decisive uptrend leading to a breakout above $0.70 and potentially $1. 

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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