Flare Drives Bearish Rally: Will FLR See A Pullback Amid Downturn

Data-focused Blockchain Flare token (FLR) saw a notable price pullback of over 12% and was attempting a revival from the channel’s low.

When trading in a falling wedge pattern, the FLR token built the anticipation for an upside move with a false breakdown near the $0.015 mark.

Currently, the token has displayed a bearish dominant price trend. Hence, its value continued to drop from the upper cluster of $0.0500. It experienced a correction of over 65% in the last three months.

The altcoin failed to hold and break the cluster of $0.0500. It saw a major reversal and continued to form the lower low swings on the chart.

The overall market saw significant bearish pressure, and the token was traded under the bearish influence. To retain the gains, the FLR token has to retain the 20-day EMA mark to gain momentum ahead.

At press time, the Flare token was trading at $0.0162 with an intraday surge of 12.20%, reflecting buying momentum. Its trading volume rose over 23.20% to $16.52 Million, displaying lower optimism among investors and traders.

The pair of FLR/BTC was at 0.000000288 BTC, and the market cap was $697.72 Million.

Flare Token Displayed Bearish Moves: What’s Next?

The daily chart followed a declining trend, and the token has dragged below all the major EMAs. That led to the token reaching its 552-week low region near $0.0130.

For the past few weeks, sellers consistently made short positions. It continued to push the FLR price from the top, which led bulls to stay on the backfoot.

@FV tweeted that the FLR price has made a bottom and is ready to accumulate ahead.

I feel pretty comfortable saying the bottom is now in for #Flare$FLR hit my final target of $.0135 with precision https://t.co/eIjfztojBs pic.twitter.com/kXEe4OoP56

— Flare Vault (@FV887606) August 6, 2024

Moreover, the contracting volatility converged as a falling wedge pattern. It directed the underperformance on the chart as it reached the bottleneck section.

Notably, the six-day selloff streak broke today, and buyers seemed interested in accumulating the token from the lows. However, the trend was still bearish, and a lack of meaningful bounce was still due.

The Relative Strength Index (RSI) curve showed an oversold stance, as the reading was noted at 22. This means a bounce is due and can be seen shortly.

Conversely, the MACD indicator still projected the bearish cues, and no signs of reversal were noted.

FLR Weighted Sentiment Data Noted an Uptick

Following the impressive price surge of over 10% intraday, the weighted sentiment data saw improvement. It noted a bounce of over 5%. Its value reached the positive region and displayed a shift in the market dynamics.

The social dominance data was still declining and continued to drop. It dragged toward the negative region, noted at -0.019%. This displayed no significant chatter and online buzz among the investors on the media platforms.

Suppose the Flare price continues to drive the bearish rally and fails to retain the 20-day EMA mark, it may stretch the downtrend toward the support zones of $0.01480 and $0.01360.

Conversely, if it gains momentum and drives a pullback, it may soon retest the cluster of $0.01630, followed by $0.0170. Still, the FLR token was capped inside a falling wedge formation.

If the token does not cross the $0.01750 mark on a closing basis, it may remain in a bearish bias.

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