FLOW Technical Analysis: Bullish Dominance At $1.50 Under Threat

The FLOW price action experiences an increase in selling pressure within the consolidation range, teasing a bearish breakdown. The bearish engulfing candle within the range gains support from increased trading volume, projecting a high potential bearish breakout entry opportunity. So, should you consider taking an early bearish position, or will the buyers remain dominant at bottom support?

Key Points:

Source - TradingView

FLOW Technical Analysis

The FLOW price action shows a long-coming consolidation range in the daily chart within the $1.56-$1.71 mark. However, the recent increase in selling pressure leads to a 7.81% drop to create a bearish engulfing candle within the range.

Currently, the daily candle shows a minuscule growth of 0.61% but with a long-tail protecting lower price rejection, signaling a bullish revolt. Moreover, the declining trend in the EMAs reflects a solid underlying bearishness.

So, if the selling pressure grows, the downtrend continuation will break the crucial support level of $1.50, signaling a bearish entry opportunity. In such a case, traders see a 10% drop to the support level of $1.40.

Conversely, if the bullish momentum increases, a reversal will pump the FLOW prices to the overhead resistance of $1.71.

Technical Indicators

The RSI indicator shows a sharp drop to the nearly oversold zone, reflecting an increase in selling pressure. Moreover, the MACD indicator shows the fast and slow lines ready for a bearish crossover as the bullish histograms decline to the zero line.

Therefore, the FLOW technical analysis suggests that traders can shortly find a selling opportunity at $1.50 fallout.

Resistance Levels - $1.71 and $2

Support Levels - $1.50 and $1.40