By Nathan Ferguson
The crypto market sees a bullish comeback, with assets, including NFT-based, recording gains. FLOW joins this cohort, with its price rebounding by 65% from the latest bearish cycle’s bottom. However, let us assess further developments.
Although the latest surge, FLOW failed to reclaim the May support floor at around $2.31. Also, the mid-week correction showed the possibility of the bias losing strength, translating to downward movements. Nevertheless, the alt managed to rebound, and the bulls dominated the space. While writing this news, FLO changed hands at $1.88. Can it accumulate adequate bullish strength to hit its previous support?
FLOW’s MFI (Money Flow Indicator) shows the altcoin was massively overbought since the mid-June sessions. Moreover, the RSI (Relative Strength Index) maintains an upside trajectory, at 59.18 during this publication. Nevertheless, the indicator was yet to exhibit overbought tendencies. That reflects an upside room before investor sentiment shifts to favor bears.
The latest announcement about the Teleport bridge might have triggered the token’s ability to maintain the latest gains. The publication revealed that ETH users might send USDC to Flow’s blockchain. That would possibly unlock massive funds flow from Ethereum. Especially by investors looking to buy non-fungible tokens (NFTs) in the FLOW network.
The Probability of Disrupted Flow
FLOW NFTs recorded substantial activity within the past 30 days. NFT trade volume increased to $7.01 million by July 15 before drastic reductions emerged. Also, the NFT index reveals a fascinating thing about non-fungible tokens on the FLOW blockchain. Investors appear more attracted to pricier NFTs, according to the number of unique addresses that bought NFTs worth over $100,000.
NFT volumes appear to drop nearly every time the price sees volatility related to directional change. If this narrative holds, the coming few days can trigger another shift, favoring downsides. That remains highly possible due to almost overbought condition by the current price. Whales reduced their FLOW balances as of July 22, translating to some bearish strength.
The above narrative matched a decline in the asset’s FTX funding rate. That shows most traders are accepting FLOW’s current bearishness. That could mean a limited uptrend until the alt sees a substantial retracement. Nevertheless, there’s a high chance of extended bullishness if broad market sentiments remain in upside favor.