FLOW Bloodbath Lead downtrend to Latest Annual Low, Also a Positive Indication

Flow price entered a bullish hammer candle on 17th December.
The Average Directional Index (ADX) is moving up, suggesting a possible sell in the market.
Due to the bullish momentum, sellers covered their short, thus reducing the volume by 70% overnight.

Flow prices disappointed investors during a sharp selloff in the cryptocurrency. Amidst the battle of bulls and bears, the altcoin saw its latest yearly low of $0.717 on 17th December. Uncertainty is present in the market as the biggest cryptocurrency- Bitcoin failed to sustain the monthly high, most of the altcoins turned down.

Buyers have failed to sustain the Flow price at its higher levels, thus speculators follow the sell at higher strategy so far. During the lower-higher trend, the buyers first lost the key support level of $1.4 in November, later they also lost the ideological level of $1.0. All these support levels have turned into upcoming bullish barriers.

Against the USDT, Flow coin is trading at $0.767 mark at the time of writing along with 2.3% intraday drop. Notably, Flow price registered a bullish hammer candle last night, it can spread pump in crypto price for short-term outlook. On the other hand, buyers may see another price drop ahead.

Trading volume increased this week, but due to bullish momentum, sellers covered their short and volume decreased 70% overnight. As of now bears are set to close weekly candles in red together with a 21.9% decrease. Meanwhile, Average Directional Index (ADX) is moving higher, suggesting potential selling in the market.

In terms of the daily price scale, technical indicators show overselling in FLOW coin. Bears may cover their shorts soon because simple RSI stays into extreme oversold territory this week. And Stoch RSI also shows positive signs as it prepares for an upside run. In addition, MFI indicators meet 6 month’s lower levels.

Conclusion

Technical indicators like MFI and RSI show overselling in FLOW coin, may provide a positive environment soon. And last night, bears got strong rejection, which drew a bullish hammer candle, so buyers must keep this key support level.

Support level – $0.70

Resistance level – $1.0 and $1.4

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing