With the crypto bulls moving again, gains can be seen across the crypto spectrum, including those of NFT-focused networks. FLOW happens to be in this category and a look at the price action so far has bounced back 65% from the bottom of its latest bearish cycle.
Despite the latter advantage, FLOW still lagged the May support level near the $2.31 price range. The mid-week pullback highlighted the possibility of the trend losing momentum in favor of a correction. However, it managed to bounce back and the bulls are back in control. FLOW was trading at $1.88 at the time of writing. However, can the alt exert enough bullish pressure to reach the previous support?
FLOW’s Money Flow Indicator (MFI) confirms that the cryptocurrency has been heavily overbought since mid-June. Additionally, the Relative Strength Index (RSI) was in an upward trajectory and stood at 59.18 at the time of writing. However, it is not overbought yet, so there is still room for some more upside before investor sentiment turns in favor of the bears.
FLOW’s ability to hold recent gains may be rooted in a recent announcement about its Teleport bridge. The announcement revealed that Ethereum users can transfer USDC to the Flow blockchain. The implication of the announcement is that it could potentially unlock the flow of a large number of funds from Ethereum. Especially from investors interested in buying NFTs within the FLOW ecosystem.
— Flowverse 🌊 – Discover Flow Blockchain (@flowverse_) July 22, 2022
What is the probability of a disrupted flow?
FLOW NFTs have generated significant activity over the past 30 days. Total NFT trading volumes rose to $7.01 million on July 15, but have since fallen dramatically. The NFT statistics also reveal something interesting about NFTs on the FLOW network. Investors seem more interested in the more expensive NFTs revealed by the number of new or unique addresses that have purchased NFTs worth more than $100,000.
NFT volumes seem to fall almost every time the price experiences volatility associated with a shift in direction. If this observation is true, the next few days could see another shift in favor of the downtrend. This is becoming increasingly likely given the almost overbought nature of the current price level. Whales have cut their FLOW stocks as of July 22, adding to some bearish pressure.
The above observation corresponds to a decrease in the FLOW funding ratio of FLOW. This suggests that more investors are adopting bearish sentiment at the current price level of FLOW. This could be a sign that the current upside potential is at least limited to a significant retracement. However, there is still a significant chance of a sustained bullish wave if general market sentiment remains in favor of the uptrend.
This post FLOW rides on a strong bullish wave as the alt tries to recover to May support levels
was published first on https://ambcrypto.com/flow-rides-on-a-strong-bullish-wave-as-the-alt-attempts-recovery-to-may-support-levels/