Flare Network launches FXRP, bringing XRP into DeFi: Impact on FLR?
Flare Network’s surged to a 9-month high following the launch of FXRP, set to be deployed across DeFi protocols.
Key Takeaways
Why did FLR’s price surge recently?
The launch of FXRP allowed XRP to be minted as an overcollateralized asset for DeFi use, sparking aggressive buying.
What could impact FLR’s next move?
If buyer demand holds, FLR may retest $0.0278, but strong profit-taking could drive it down to $0.023 support.
Flare Network [FLR] surged to a 9-month high of $0.0285 before sharply retracing to $0.025 at press time.
Over the same period, its volume surged 347% to $52 million, while its market cap reached a new high of $2.1 billion, indicating steady capital flow.
But what triggered the price hike?
Flare Network launches FXRP
The recent launch of FXRP primarily drove Flare’s price uptick. According to an official report, Flare launched its FAssets protocol, starting with FXRP v1, a version of XRP designed for DeFi.
This move aims to allow Ripple [XRP] holders to mint FXRP on Flare and access lending liquidity pools and DEXs on the network.
The rollout marks the first time that XRP, a non-smart contract, can be used in a composable DeFi system without a third party.
Importantly, the FAssets are designed to convert XRP tokens into one-to-one representations secured through overcollateralized assets and deployed across DeFi protocols.
Retail buyers jump into the market
Significantly, following the FXRP rollout, buyers jumped into the market to accumulate the altcoin. According to Coinalyze, FLR saw $202 million in Buy Volume compared to $190 million in Sell Volume.
As a result, the altcoin saw a positive Buy Sell Delta of 12 million FLR tokens, a clear sign of aggressive spot accumulation.
Historically, increased accumulation has resulted in an upward pressure, often a prelude to higher prices.
Profit takers, join the party
As expected, as Flare jumped on its price charts, holders who have been underwater jumped into the market to cash out.
According to Coinglass, FLR has recorded positive Spot Netflow for ten consecutive days. At press time, Netflow was $222.5k, indicating higher inflows, a clear sign of sustained selling activity.
Often, when profit-taking activity holds for a sustained period, it causes downward pressure, resulting in a market pullback.
Can FLR hold recent gains?
According to AMBCrypto’s analysis, Flare soared as investors rushed into the market to accumulate, driven by the launch of FXRP.
For that reason, the altcoin’s Stochastic RSI made a bullish crossover, reaching 66.9, indicating strong upward momentum.
Likewise, its Relative Strength Index (RSI) jumped to 69 before retracing to 61, further confirming increased buyer and seller activity.
Typically, when these momentum indicators edge into bullish territory, they signal trend continuation potential. Thus, if demand witnessed in the past day holds, FLR will reclaim $0.0278 and target $0.0289.
However, profit takers are highly active in the market and pose a significant threat to the uptrend. If sellers overwhelm the market, the correction will continue with $0.023 as a critical support level.
