Exploring FLR’s sudden gains – Flare Network trading volume explodes 181%!
The $0.00725 local resistance zone was breached and there is potential for the price uptick to extend another 16% to 25%.
Flare Network [FLR] rallied 6.67% in the past 24 hours, and the trading volume picked up by 181%. The altcoin has surpassed the $0.0072 local supply zone. The current move has the potential to climb another 16%-25%.
In a post on X, Flare Network announced that the omnichain deployment of Tether [USDT], USDT0, was accessible as a yield through Superform.
The announcement coincided with the price bounce, but the move was unlikely to be sustained. From a technical perspective, the Flare token’s higher timeframe trend remained unchanged.
Marking the bullish price targets of a potential bounce
On the 1-day chart, the swing structure remained clear. It was bearishly poised, with the previous swing low at $0.00725 (white). This level was breached on Tuesday, the 2nd of June.
FLR fell to a new low of $0.00648. The bounce in recent days, including the gains of the past 24 hours, was part of a minor bounce from overextended bearish conditions.
The RSI had fallen below 30 in early June, signaling oversold market conditions. The OBV was also making a series of lower lows in recent weeks.
The structure was bearish, but the market can’t trend downward forever. Relief rallies are part of a healthy market. The latest structural break came from the $0.01 swing high. Therefore, it was used to plot the Fibonacci retracement levels (orange).
Using these levels, the aforementioned 16%-25% rally potential was determined, as the bounce can technically reach $0.0087-$0.0093.
This is not the time to go long
The higher timeframe swing level at $0.00725 coincided with a key lower timeframe support/resistance area. This area has been contested since the beginning of June. Recent price action saw this area flipped to support once again.
Intraday traders and scalpers can use the short-term momentum to their advantage, but swing traders and investors must remember that the higher timeframe Flare trend was bearish.
Selling it near key resistance zones was a surer bet than buying the relief rally, expecting a certain amount of gains.
Final Summary
- The Flare bounce of 6% in a day came alongside a sizeable increase of 181% in daily trading volume.
- The $0.00725 local resistance zone was breached, and there is potential for the price uptick to extend another 16% to 25%.
