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HomeCrypto NewsAnalysisFlare Faces 7% Drop After 100-Day EMA Rejection: Can Bulls Push Beyond $0.016?

Flare Faces 7% Drop After 100-Day EMA Rejection: Can Bulls Push Beyond $0.016?

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With an intraday pullback on the verge of undermining a breakout rally, will Flare sustain dominance at $0.016 for a prolonged uptrend?

As the bleeding crypto market inches closer to the $2 trillion mark, Flare (FLR) drops 7%, resulting in a bearish piercing candle. After a brief bullish rally, signs of exhaustion point to a potential decline toward the $0.014 support level.

The key question now is whether Flare can achieve a close above the consolidation range, signaling the potential for a breakout.

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Flare Uncertain Near $0.016

Following a massive correction after failing to sustain dominance above the $0.050 psychological mark, FLR found crucial support at $0.014. During the downfall, FLR’s price action formed a falling wedge pattern. 

COINBASE:FLRUSD Chart Image by Trojan69420
FLR chart

In the consolidation phase, which ranged from $0.013 to $0.016 from early August to early October, FLR managed to break above the falling wedge.

On October 2, FLR surged by 20%, producing a bullish engulfing candle that surpassed the overhead resistance. This move pushed the price past the 50-day EMA and the $0.016 mark, reaching a 24-hour high of $0.017 on October 3.

However, profit-taking and supply pressure from bullish exhaustion led to a 7% intraday drop, bringing the price back down to the 50-day EMA. FLR is currently trading at $0.01614 and struggling to secure a close above its resistance ceiling.

Will Breakout Run Cross $0.020?

As the overhead resistance limits the breakout rally and leads to a failed breakout run, the possibility of a downtrend continuation within the consolidation range has resurfaced. 

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However, the growing bullish divergence in the daily RSI line teases a bullish continuation with a gradual higher-high and higher-low formation. According to Fibonacci retracement levels, the next key resistance sits at $0.02320.

In addition, the 100-day and 200-day EMAs, at $0.01791 and $0.02077, respectively, are important dynamic resistance levels to watch. On the downside, FLR has support at $0.01426, $0.01341, and the psychological $0.012 level.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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