- The token has shown bearish actions in the previous sessions.
- FLOW token is trading below the demand zone on the daily time frame.
The FLOW token is trading in a long term downtrend with bears pushing down the price and forming lower highs and lower lows on the daily time frame. Bulls tried to regain control but the bears were strong enough to hold them.
FLOW token on the daily chart
The token is trading below the demand zone on the daily time frame and is facing rejection. As we can see on the daily chart, FLOW token is currently trading at $1.005 with a loss of -2.20% in the past 24 hours. The token is finding support at the 50 EMA and is trading between its key Moving Averages which are 50 EMA and 200 EMA. (Red line is 50 EMA and the blue line is 200 EMA). To continue the uptrend the token needs to break above the demand zone with strong bullish momentum.
Relative Strength Index: The RSI curve of the asset is currently trading at 49.07 just below the halfway mark of the 50 point line. The decline in the token’s price has led the value of the RSI curve to decrease. The RSI curve has crossed the 14 SMA downward indicating the token is bearish. If the token falls below the 50 EMA and continues to decline in value then the value of the RSI curve will drop even further.
Analyst view & Expectations
The token made a double top pattern below the demand zone trying to give a breakout but failed to do so. Investors are advised to hold their buys and wait for the token to break and cross above the demand zone and then buy to get more clarity on the direction of the trend. Whereas, intraday traders have a good opportunity to go short if the token crosses below the 50 EMA and book the profits as per their risk to reward ratio.
According to our current Flow price forecast, the value of Flow is expected to climb by 41.57% by the next few days, reaching $ 1.465427. Our technical indicators indicate that the current sentiment is bearish, with the Fear & Greed Index reading 48. (Neutral). Flow had 15/30 (50%) green days with 8.58% price volatility in the previous 30 days.
Technical Levels
Major support: $0.980 & 50 EMA on the daily chart.
Major resistance: $1.180 & $1.270
Conclusion
The token is facing rejection from the demand zone and is forming a bearish chart pattern as per the price action. Investors are advised to wait for a clear indication before acting.
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 the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/02/10/flow-price-analysis-token-forms-double-top-pattern-whats-next/