FLOW Technical Analysis: Uptrend Takes A Break; Is It Safe To HODL?
Flow is a fast, decentralized, user-friendly, and user-friendly blockchain designed to serve as the foundation for a new kind of game, apps, and digital currencies that work with the. It is the only layer-1 blockchain created by a team that has consistently provided top-quality, consumer-friendly blockchain experiences such as CryptoKitties, Dapper Wallet, NBA Top Shot.
To further increase its cross-chain and decentralized finance (DeFi) goals The Flow blockchain is announcing the introduction in the feed for chainlink prices to the rest of Decentralized Applications (DApps) that are on Ethereum blockchain.
Let us move ahead to read about Flow technical analysis.
Past Performance of FLOW
In our previous article, we mentioned the possibility of the FLOW coin price escaping the falling channel. This comes true with the 40% jump in the last days of January and the price retests the falling channel breakout. The post-retest rally shows a growth of 35% in the past week and breaks above the horizontal level at $8.
FLOW Technical Analysis
The FLOW coin price action shows a potential piercing candlestick as it struggles to sustain above the psychological mark of $8. However, a lower price rejection will transform it into a retest candle and fuel the uptrend.
The Ichimoku Cloud indicator shows the price action penetrating into the bearish cloud indicating a potential trend reversal. Moreover, the conversion and baselines give a bullish crossover representing a bullish uprise.
The DMI indicator shows a bullish continuation of DI lines after the recent crossover. The ADX line shows a slow reversal indicating a rise in trend momentum. Therefore, the indicator keeps a bullish sentiment for the FLOW token.
The RSI indicator shows the slope struggling to crossover the 70% barrier and trends lower within the nearly overbought zone. Moreover, the rising 14-day SMA showcases a bullish reversal in the underlying sentiments.
That is why the technical indicators and the price action tease a bullish continuation above the $8 mark.
Upcoming Trend
The FLOW coin price action creates the possibility of a retracement after the recent surge of around 80% in the past two weeks. Hence, traders need to be careful and keep holding onto their positions.
In case of a bullish continuation, if the price shows sustenance above $8, the uptrend may find opposition near the $9.5 and $11.5. However, the fallout of $8 can lead to a reversal to $7.