Flare token has fallen sharply from $0.025 due to increased selling pressure! What’s next for FLR pricing?
The Flare token has experienced significant volatility in recent hours as short-term holders have taken advantage of the recent price rise. The price of the FLR token quickly rose above the resistance level after Google’s cloud division (GOOGL) announced its participation as a validator and infrastructure provider for the Flare blockchain. However, this surge was met with significant selling pressure near resistance, creating a market high. As a result, the price of FLR has fallen significantly and is now aiming to stabilize its momentum.
Flare’s funding rate has reached its lowest point.
The price of the Flare token has experienced notable volatility, resulting in significant changes in on-chain metrics unlike anything previously observed. Data shows that Flare recently faced resistance around $0.025 due to a wave of profit-taking by holders, causing its price to plummet.
Accordingly, the funding rate recently dropped to the lowest point at -0.55%. This downward trend in funding ratios indicates that the dominance of short positions is surging, as short-term traders are now willing to compensate long-term traders. The current Flare funding ratio shows growing bearish momentum, raising the possibility of further price declines in the coming hours.
Flare’s open interest is currently near an all-time high, trading at $3.3 million, up 300% from its recent low. This sharp rise in open interest could help maintain investor confidence and keep the price above current support levels. Flare, which describes itself as a “blockchain for data,” provides developers with access to decentralized data through Oracle systems.
Following the announcement of the partnership with Google, the price of the FLR token soared 40%. However, the token is currently in a sharp correction phase, with the long/short ratio currently at 0.6284, down below 1, with 62% of total positions predicting further price declines.
What’s next for Flare pricing?
Flare price was rejected near the recent resistance at $0.025 and fell sharply towards the moving average. However, buyers are protecting a decline below the EMA20 trendline. At the time of writing, FLR is trading at $0.02, down more than 7.2% from yesterday’s rate.
The RSI line is down in overbought territory. However, it is now trading above the midline at level 56, suggesting there is a slight advantage for buyers.
Any attempt at recovery may face resistance at the 20-day EMA. A drop to this level would indicate a shift in market sentiment towards selling during the rally. In this scenario, the Flare price could consolidate around $0.016.
On the other hand, if buyers have successfully rebounded the price above the EMA line, this could mean that the correction phase is over. This could potentially maintain buying momentum and set price to target a breakout above the immediate Fib channel.