Flare price (FLR) capped inside a range-bound territory between $0.01480-$0.01700. This week, the token showed signs of recovery and attempted to surpass the region.
Rising more than 12% in the last 48 hours with a trading volume surge of over 220%, it is clear that Flare price is likely to break out soon. Additionally, the rising Open Interest (OI) reflected the investors having started making long positions.
Moreover, on-chain data shows that a breakout might be brewing, as demonstrated by a sudden spike in volatility.
Flare Inched Closer to Range Top: Breakout Imminent?
The Flare token projects a range bound move on the daily chart. Bouncing off from the range low mark of $0.1480, the token reached the barrier of $0.1680 and climbed above the 20 day EMA mark, signifying buyers accumulation.
According to data from CoinMarketCap, Flare price showed an impressive spike of over 6% in the past 24 hours, trading at $0.01687. Based on the market cap, the token has secured the 83rd position with a market cap of $7961.6 Million.
FLR Price Chart | Source: Santiment
In a recent post on X by @ZeroHedge, he shared that FLR has made an interesting setup and was poised for a range breakout. He added that close above the neckline would be ideal.
$FLR
Interesting setup I just found with the screener.
This is trying to breakout of a stage 1 basing on the daily chart. 🟢🤔
Close above would be ideal pic.twitter.com/AkhStvBPLG
— Wick (@ZeroHedge_) August 29, 2024
Tweet by @ZeroHedge | Source:X
The ongoing price action showed a follow on buying action in the last 48 hours. A daily close above the $0.01700 mark confirmed the range breakout and would unlock a next bullish leg toward the $0.0200 mark.
The RSI line showed a vertical spike and approached the midline zone, noted a positive divergence, representing the bullish stance. Similarly, the Chaikin Money Flow (CMF) index valued at 0.08 reflects the surge in the buying momentum.
Surge in On-Chain Activity
This week, Flare total value locked (TVL) saw a massive increase, reflecting the rise in investor confidence. With a sustained growth in the ecosystem, the token is primed for a bullish reversal in the short term.
TVL Data Source: DeFiLlama
The TVL insights and the rising volume data conveyed that FLR holders began to accumulate. Currently, the TVL stands at $15.11 Million, denoted a massive upswing.
Data from Santiment indicates that the price volatility saw a sudden spike and moved toward the midline region, underlining increased trading activity among investors. Higher the volatility, more the possibility of an upcoming price breakout.
Social Volume Data | Source: Santiment
Likewise, the social volume data saw an increase which reflected the rise in the online discussion activity, noted around 3.
However, the long/short ratio stood at 1.09, which implies that more longs have been added in the market, conveying a bullish view. Similarly, the OI surged over 13.20% to $3.20 Million, reflecting a long buildup activity in the past 24 hours.
If Flare price level holds above the $0.01630 mark, it may see a steady rise and can trigger a breakout. The resistance points were placed around $0.01700 followed by $0.01820.
Conversely, if the $0.01580 mark fails to hold, the token may reach the lower level of the range at around $0.01450, followed by $0.01370.
