The latest addition to the crypto market, Flare had a ground-breaking entry. A few minutes after the launch of its network, it surged to as high as $0.08 which signifies a more than 21,000% increase. As of the time of writing, FLR lost almost half of these gains. Many wonder why.
Flare Airdrop Beneficiaries Dump the Coin
Recall that the coin was distributed among XRP HODlers with many exchanges participating in the airdrop. There are several indications that beneficiaries of the distribution took part in selling off the asset. The comment sections on most platforms are filled with users asking where to sell their bags.
A look at the chart sheds more light on this. In the 5-minute chart, we noticed that the cryptocurrency was briefly oversold but recovered a few minutes later. As a result, it dipped to a low of $0.02 before reclaiming lost levels.
One mark it held on to for the past 1 hour is $0.04. It is still trading above it and attempting to flip $0.041. It’s hard to conclude what will happen in the next few hours. However, it is worth noting that it had a bearish divergence in the highlighted timeframe. This event may signal more downtrends for the coin.
All are on what happens next as many look forward to the price at which prices remain stable. Nonetheless, a look at the Relative Strength Index reveals more details. One such is that the asset under consideration may start plotting a chart to recover.
A few minutes ago, it was overbought. The most recent price decrease was in reaction to this event. A closer look at the chart also shows that RSI seems to form support at 40. This may be a trigger for another uptrend.
More on FLR
Flare, an EVM-based Layer 1 blockchain, was developed to assist programmers in creating web and blockchain-compatible apps. By offering decentralized access to high-integrity data, Flare offers new use cases and monetization techniques.
It claims that the State Connector and the FTSO, Flare’s native interoperability protocols, are secured by the network itself, enabling decentralized and dependable data transfer from a variety of off-chain sources. The Flare Time Series Oracle offers highly decentralized price and data feeds to dapps operating on Flare without relying on centralized vendors.
