FLOW Token price analysis: FLOW token price is falling after facing rejection at the long term supply zone, what happens next?

FLOW Token price is facing rejection at the upper levels of $7.80
The Token is forming a symmetrical triangle pattern on a daily time frame.
The pair of FLOW/BTC is trading at 0.0001504 with an increase of 1.14% in the market cap of the digital asset over the past 24 hours.

FLOW Token price is in a strong downtrend. There seems no hope for recovery in the Token as it again failed to surpass the important supply zone of $7.80.The Token has started forming higher low and higher high formations on a daily time frame. FLOW token price is currently at 20 EMA after the fake breakout of 50 EMA. The Token fell after facing rejection at 50 and 100 EMA, and currently, it is trading below the vital 50 and 100 EMA. The Token is trading at the middle of the Bollinger band indicator after failing to surpass the upper band of the Bollinger band indicator. The Token recently broke down the triangle pattern, and a recent test at the long-term supply zone of $7.88 seems a retest for further fall. The investor should be cautious and not take a long position until the $7.88 price level is not broken. Volumes have increased over the last trading days, causing the volatility to increase, and thus, investors should wait until the price settles and then take trades.

FLOW token price is neutral as per technical parameters

FLOW Token price, after falling from the long-term supply zone turned supply zone, is trading at $6.55.

Supertrend: Recent bullishness in the price of the FLOW token led to the Supertrend indicator’s breakout at $6.76, and the supertrend gave a buy signal. The Token is currently trading above the supertrend line, acting as support. If the token bounces off the super trend trendline, there can be a short-term bullish movement in the digital asset price. If the Token cannot sustain the above supertrend buy line, then it can turn into a bearish trend that can push the price down to $5.12.

Moving Average Convergence Divergence (Bullish): MACD indicates a bullish trend on the daily time frame as it gave a positive crossover. The buyer’s signal line(blue) crossed the seller’s signal line (orange) on the upside, indicating a possible breakout of the long-term supply zone at $7.80, which can help the coin price move up to $8.87 with strong momentum.

FLOW Token price is forming a symmetrical triangle pattern on the daily timeframe

FLOW Token price was respecting the green trendline from the past trading weeks. The Token was also taking support at the long-term demand zone than at $5.1 – $5.2.Recently, the coin faced rejection in the long-term supply zone and as a result, the token started falling again.

Relative Strength Indicator: RSI is trading at 49.31, and recently the RSI Curve has given a negative crossover of 20 SMA. RSI Curve has fallen below the halfway mark of 50. The trend is bearish as of now, and it will continue until the Token crosses the price of $7.88.

Average Directional Movement Index: ADX dipped below 30 as Token’s price fell. After the retest of the supply zone, the Token has started falling again, and the ADX curve is depicting the same.ADX curve has turned downwards, indicating a strong bearish movement for the upcoming trading days.

Conclusion

FLOW token price is seen as weak in different time frames, and the technical parameters suggest the same. The price level of $7.88 will act as a make or break level. If the coin stays below $7.88, the bearish momentum is likely to continue, and if the price of $7.88 is taken out, then the trend can change in the short term.

SUPPORT: $5.1 and $5.22

RESISTANCE: $7.51 and $7.88

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.

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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