Flow [FLOW] Price Analysis: 05 April
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice.
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- The indicators underlined neutral momentum behind FLOW
- Buying pressure over the past three weeks could see a bullish breakout in the coming weeks
Ethereum breaking past the $1,840-resistance level to reach $1,900 appeared to lend altcoins some bullish impetus. Bitcoin was attempting to climb above $29,200 again, and Flow (FLOW/USDT) seems to be at a pivotal moment too.
How much are 1, 10 or 100 FLOW worth today?
In this analysis, we will discuss the inferences drawn from various technical indicators and assess their potential impact on FLOW’s future price movement. FLOW bulls have managed to hold on to the $0.9-$1 zone of support, but the indicators did not show noticeable bullishness in the market.
Momentum over higher timeframes seemed neutral
Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. With a value of 50, the RSI for the FLOW/USDT pair suggested a balanced market, indicating that neither the bears nor the bulls have a stronghold on the price action. This equilibrium presented an opportunity for a trend to emerge.
Bollinger Bands help traders identify potential trend reversals and price breakouts by tracking volatility. The converging bands for the FLOW/USDT pair indicated that the market may be entering a period of consolidation, which could be followed by significant price movement in either direction.
On-balance Volume (OBV) is a cumulative volume-based indicator, one that analyzes the relationship between price and volume. The uptrend in OBV since 11 March suggested that buying pressure has been increasing. This could lead to sustained price growth for FLOW.
Chaikin Money Flow (CMF) is an oscillator that measures the flow of money into and out of an asset. With a value of +0.01, the CMF highlighted that buying pressure has been slightly dominating selling pressure. This could contribute to short-term bullish momentum on the charts.
Moving Averages – The 21-period SMA (0.997) and the 55-period SMA (1.06) for FLOW/USDT revealed a bearish crossover, with the shorter-term moving average below the longer-term moving average. This crossover could signal a bearish trend, but traders should monitor the price action for any potential bullish reversals.
Moving Average Convergence Divergence (MACD) is a momentum indicator that assists traders in identifying trend strength and direction. The MACD value of -0.016, with both the MACD and Signal line below the zero line, signalled bearish momentum for the FLOW/USDT pair. However, the MACD’s proximity to the zero line suggested that bearish momentum might be waning and a trend reversal could be imminent.
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Parabolic SAR is a trend-following indicator, one that helps traders determine potential trend reversals and current trend direction. With the SAR dots positioned above the price candles, the indicator implied a bearish trend for FLOW/USDT. However, traders should closely monitor the SAR dots for any potential flip below the price, signalling a bullish reversal.
Consolidation phase means risk-averse traders can wait for a breakout
Considering the inferences drawn from the various technical indicators, the FLOW/USDT pair seems to be at a pivotal moment. The balanced RSI, increasing OBV, and slightly positive CMF hinted at a potential bullish trend, while the bearish crossover of moving averages, negative MACD, and Parabolic SAR highlighted a bearish trend. The converging Bollinger Bands indicated a possible breakout in either direction.
In the context of the overall bullish sentiment across the crypto-market, traders should exercise caution and closely monitor the FLOW/USDT pair for any definitive trend signals. Important support levels to watch are $0.97 and $0.84, while key resistance levels are $1.18 and $1.4. A break above the $1.18-resistance level could present a ‘buy’ opportunity, as it would signal a shift in the market structure and the potential for further price appreciation. Conversely, a break below the $0.97-support level may signal a ‘sell’ opportunity, indicating that the bearish trend is likely to continue.
As the market remains uncertain, vigilance and swift response to emerging trends are essential for traders in the current environment. With FLOW ranked 53rd on CoinMarketCap and a market capitalization of $1.03 billion, its position in the market could also be influenced by the performance of other major cryptocurrencies.
In summary, the FLOW/USDT pair is currently at a pivotal moment, with mixed signals from various technical indicators. As the broader cryptocurrency market experiences bullish sentiment, traders should closely monitor the FLOW/USDT pair for any definitive trend signals and be prepared to act swiftly to capitalize on potential opportunities. The key support and resistance levels serve as crucial reference points for determining ‘buy’ or ‘sell’ trading signals, and traders should remain vigilant in the face of market uncertainty.