The world is rapidly embracing decentralization thanks to blockchain technology. As a result, many crypto projects have demonstrated their commitment to a DeFi future.
The Flow blockchain is the latest network to toe the line through its new Decentralized autonomous organization (DAO) infrastructure called CAST.
We’re here to make DAOs mainstream. Today, we’re launching the public beta of CAST, a voting tool for token communities on the @flow_blockchain. Make Decisions, Together.
Here’s what you need to know about [our first tool] CAST (a thread) ?
— Dapper Collectives (@_Collectives_) July 27, 2022
CAST’s role as a community governance tool may pave the way for more projects within the Flow network. Such an outcome has the potential to substantially boost the demand for the FLOW cryptocurrency.
Deep water on the horizon?
FLOW’s price tag clocked at $1.78 on 28 July after a 9.6% rally in the last 24 hours. The rally also aligned with the CAST announcement, which means it may have supported positive investor sentiment.
However, it remains to be seen whether the price will continue to support more upside.
Source: TradingView
Despite the slight uncertainty about FLOW’s ability to extend its bullish performance, the recovery above the 50-day moving average is a healthy sign.
It indicates that the cryptocurrency is still experiencing strong demand near the same indicator. It kicked off on a bearish note this week, which saw the bears push slightly below the 50% RSI level before bouncing back.
FLOW’s next major price target is the $2 price level. It crossed above this level earlier this month courtesy of its mid-month rally which pushed it as high as $2.11.
It was followed by a pullback, due to profit taking and this was bound to happen after a strong uptick in its volume and market cap. The latter peaked at $2.16 billion and the pullback sent it down as far as $1.6 billion.
Source: Santiment
FLOW’s market cap has so far recovered above $1.8 billion and it also registered a slight volume increase in the last two days.
This might be a sign that investors are buying back at lower prices. This often happens when investors anticipate more upside. However, this does not necessarily guarantee that the price will continue extending its upside.
The lower volume suggests that the current upside does not have as much momentum as its mid-week rally. More price weakness might be on the way if FLOW fails to secure enough buying pressure to overcome resistance at its current level.
Even though deep water often flows slow, it has a lot of potential energy when channeled the right way and this is the case with FLOW.
