FLR price made a 14% fall today as it reached key resistance. Will it enter a corrective phase?
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Key Takeaways
FLR completed a five-wave Elliott structure, peaking at $0.032.
The breakout above $0.014 ended the long-term downtrend.
Overbought RSI signals a likely short-term correction.
Flare (FLR) has demonstrated a robust recovery. It broke out of a prolonged descending trendline and completed an impulsive five-wave rally to a high of $0.032 on Dec. 2.
The move marks a significant shift in market sentiment, following a long consolidation near $0.012, and has confirmed the start of a new bullish cycle.
However, a potential corrective phase may follow with the Relative Strength Index (RSI) in the overbought territory to establish new support levels.
The daily chart of Flare FLR reveals a significant breakout from its prolonged descending trendline, marking a shift from its extended downtrend that persisted throughout the majority of 2024.
After forming a strong base near $0.012, the price initiated an impulsive five-wave structure, surging to a high of $0.032 as of Dec. 2.
FLRUSD ascending resistance met | Credit: Nikola Lazic/TradingView
This move aligns with increased bullish momentum, pushing the price past several critical resistance levels and confirming the development of wave 5. An ascending channel was formed, but its resistance was met, potentially signaling the completion of the uptrend.
The RSI has reached overbought territory at 82%, suggesting that the rally may be nearing exhaustion. This aligns with the completion of the fifth wave, indicating the possibility of a corrective phase in the near term.
However, the broader bullish structure remains intact, provided key support levels are maintained during any pullback.
Key Observations
Impulsive Wave Completion: FLR has completed a clear five-wave structure, peaking at $0.032.
Breakout Confirmation: The decisive breakout above $0.0140 signals the end of the prolonged downtrend.
RSI Overbought: The RSI suggests overbought conditions, indicating a potential short-term correction.
FLR Price Prediction
The hourly chart highlights the completion of a five-wave impulsive structure, with the price peaking at $0.03272 on Dec. 2.
This rally marks the culmination of an extended bullish trend that began in early November. It was supported by a breakout above the key $0.022 resistance.
FLRUSD More downside needed to confirm bearish scenario | Credit: Nikola Lazic/TradingView
It dropped by 14% today to a low of $0.028 and will likely enter a corrective phase as an ABC pattern, although further confirmation is needed.
Today’s drop indicates diminishing bullish momentum and the likelihood of further downside movement. However, the price remains at a higher low than Dec. 1.
A lower one is needed to bring our projection one step closer, with the retest of the ascending support being the immediate target.
Conversely, the correction could retest critical Fibonacci retracement levels, with $0.02474 (0.382 Fib) and $0.02228 (0.5 Fib) acting as support zones. The broader uptrend remains intact if the price holds above $0.01982 (0.618 Fib), which would be the optimal ending point for the projected correction.
Key Levels to Watch
Support Levels:
$0.02779 (0.236 Fibonacci): Initial support for a shallow correction.
$0.02474 (0.382 Fibonacci): Key level for maintaining bullish momentum during the correction.
$0.02228 (0.5 Fibonacci): A deeper retracement point, aligning with previous breakout levels.
Resistance Levels:
$0.0300: Immediate resistance from the recent peak of wave 5.
$0.03272: Key high marking the wave 5 completion, crucial for confirming a new breakout.
$0.0350: Psychological resistance for a potential continuation of the uptrend.
Sustaining above $0.02474 will be critical for confirming a healthy corrective phase and preserving the bullish outlook.
Finally, a decisive break below $0.01982 could signal the start of a more prolonged consolidation phase.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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.
