Flare Price Slumps 5% As Technical Indicators Flash Bearish: Will The Bulls Bounce Back?
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The Flare price has plummeted 5% today to trade at $0.02248, as recent price movements and technical indicators suggest a bearish outlook. As FLR experiences a sharp price decline, its 24-hour trading volume has notably plunged 17% to $7 million, raising concerns about the ongoing sell-off in the market.
This comes as the data-focused blockchain Flare gets integrated into the cross-chain messaging platform LayerZero.
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LayerZero V2 integration connects Flare to 50,000 dapps across 75 blockchains.☀️
Build on @FlareNetworks to access vast quantities of new users & sources of liquidity, while maintaining the highest standards of decentralization and security.
Full story: https://t.co/3944nqtXTB pic.twitter.com/JuHTWyFd1l
— Flare ☀️ (@FlareNetworks) July 3, 2024
This move enables Flare to access Layer 1 networks, including Ethereum and Solana, and over 70 other blockchains. Flare is an interoperability protocol that enhances communication between different blockchains. It also allows developers of decentralized applications (dApps) to access off-chain data from other blockchains.
This feature enables developers to integrate real-world data into their dApps, creating more engaging experiences and innovative ways to make money. Moreover, Flare boasts a Total Value Locked(TVL) exceeding $9 million and an FDV of about $2.29 billion, according to a crypto data tracker DefiLlama.
Flare Statistical Data
Based on Coinmarketcap data:
- Flare price now – $0.02248
- Flare market cap – $954 million
- Flare total supply – 100 billion
- Flare circulating supply – 42 billion
- Flare ranking – #68
On June 30, the flare bulls gained momentum, pushing the FLR price upward. However, they encountered resistance at around $0.024 as the bears stepped into the market, forcing the bulls to lose steam. However, the bulls gathered some stamina at around the $0.022 support level, regaining composure to prevent further downward losses. This struggle between bulls and bears led to a double-bottom pattern in a 4-hour chart analysis.
The Flare price is trading with a bearish bias, but not all is lost for FLARE holders. The double-bottom technical formation oftenly suggests a bullish reversal in the market. However, will the bulls bounce back and capitalize on the pattern formation?
Based on the technical outlook, the Relative Strength Index remains below the 50-mean level. Currently, it sits at 37, suggesting a strong bearish stance. However, if the bears keep up with the momentum as the RSI points towards the south, it might hurtle towards the 30-oversold zone, intensifying the selling pressure.
Moreover, the FLARE price is trading below the 50-day SMA and 200-day SMA, tilting the odds towards the bears. In this case, the $0.0233 and $0.0237 (50-day and 200-day SMAs) act as immediate resistance keys, invalidating a bullish momentum.
On the other hand, the MACD (Moving Average Convergence Divergence) is not only in the negative territory but also below the signal line. The MACD line crossing below the signal line suggests that the short-term moving average falls faster than the long-term moving average. Most traders usually identify this technical occurrence as indicating that the token has entered a short-term negative cycle.
Flare Price Prediction: Will The Bulls Trigger A Bullish Reversal?
The Flare price analysis in a 4-hour chart shows that the FLR price is currently on a bearish trend as the buyers continue to sell. If this trend continues, the bears could push the token down, breaching the $0.0224 support zone, which cushions against downward pressure.
Conversely, the FLR token trading within the oversold levels means the bulls could start buying more, triggering a bullish reversal. In this scenario, the Flare token price could soar above the immediate resistance keys (50-day and 200-day SMAs) to target the next resistance level at $0.0248.
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