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Flow’s Riding the Wave — Can FLOW Surge Further After its All-Time Low Retreat?

Published September 19, 2023 12:16 PM
Nikola Lazic
Published September 19, 2023 12:16 PM

Key Takeaways

  • FLOW in a downtrend started in March 2021.
  • It reached an all-time low on September 11 but shows some positive signs.
  • Chart analysis points out a potential rise to $0.70.

Flow is a decentralized blockchain tailored for the next era of Web 3 games, decentralized applications, and their associated digital assets. The team behind Flow is well-known with blockchain projects such as CryptoKitties, Dapper Wallet, and NBA Top Shot behind them. 

Designed for Widespread Use

Uniquely designed for widespread use, Flow incorporates user-friendly features directly at the protocol level. This has attracted top developers and major brands worldwide, leading to innovative experiences with high-quality content.

The Flow ecosystem boasts partnerships with prominent entertainment brands like Warner Music, Ubisoft, NBA, and UFC, along with top game developers such as Animoca Brands, Sumo Digital, and nWay. 

The FLOW token serves for transaction fees, smart contracts, trading, and investment. Flow ensures security through Proof-of-Stake (PoS) consensus. Here, validators stake FLOW tokens to uphold network safety. Chosen validators approve transactions, earning FLOW tokens as rewards.

It’s no wonder that the FLOW token reached its peak during the NFT and blockchain gaming frenzy and tapered off afterward. However, with its recent all-time low, could we be on the cusp of a renewed surge in interest?

FLOW Price Analysis

FLOW price started trading at $0.381 when it was released on the Kraken exchange on January 27, 2021. It then quickly surpassed $6 on the same day and later started an uptrend. 

It ultimately reached an all-time high of $42 in March 2021, marking an astonishing 10,200% increase from its initial market release. The price held steady at these levels throughout April and May of the same year but took a significant downturn starting on May 6, when it dropped from $33 to $6, an 81% decline by June 22, 2021.

A descending structure seen from all-time high
A descending structure seen from all-time high

After a brief recovery, the price only managed to reach a lower high of $28 on September 1, 2021. This marked the beginning of a multi-year bear market and a prolonged downtrend for FLOW’s price.

During this period, a descending structure emerged, with well-respected support and resistance levels. While occasional positive signals appeared, the overall pattern consisted of lower highs and lower lows.

On June 10 of this year, the price plummeted to $0.41, reaching its lowest point. Despite attempts to break out from the descending resistance, it reverted to these levels, even dipping slightly lower to $0.39.

FLOW Tokenomics

FLOW’s token sale ended on October 6, 2020, at the price of $0.1 per token, raising $19,500,000 in the ICO via the Dutch Auction method. Out of the total supply of 1,250,000,000 at the time, only 25,000,000 were sold in the public auction. 

According to the data  from Coinmarketcap the token distribution looks as follows:

  • Ecosystem Reserve:
  • 29.66%
  • Pre Launch Backers + Community Sale:
  • 27.78%
  • Dapper Labs:
  • 18.53%
  • Development Team:
  • 16.66%
  • Staking Rewards:
  • 7.37%
FLOW tokenomics
FLOW distribution

The token is currently ranked 69 according to its market cap of $466,880,710 and 70 according to its daily volume of $32,841,960. 

  • Circulating supply 
  • 1,036,200,000 FLOW
  • Total supply 
  • 1,456,068,361 FLOW
  • Max. supply 
  • Fully diluted market cap 
  • $656,081,747

FLOW Price Prediction 

A potential horizontal support level appears to be consolidating near the $0.40 mark, coinciding with the token’s release price. While it’s premature to definitively label this as a support zone, there have been encouraging signs since it briefly dipped below $0.40. The price is showing renewed attempts to breach the descending resistance level.

FLOW price prediction
Price attempts to break resistance

If it succeeds in breaching this level, it could serve as an early indicator of a broader uptrend, as we have yet to witness a breakthrough of the descending trendline stemming from the all-time high.

Analyzing the wave structure on the 4-hour chart, we observe three upward moves from the September 11 low. A further advance would mark the completion of a five-wave pattern, signaling strength, and positioning the price above the descending trendline.

Should this occur, followed by a retest of the resistance-turned-support with a three-wave ABC correction, it could signify the beginning of a substantial rally, initially targeting $0.70 and potentially beyond. However, given the recent apparent rejection at the descending resistance, the possibility of further downward movement remains a concern.

To maintain a bullish outlook, we must promptly witness continued upward momentum. Failure to do so, with the price falling below $0.42, would invalidate this possibility, at least for the time being.

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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