Flare token has encountered substantial volatility in recent hours as short-term holders capitalized on the recent price rally. FLR token’s price quickly broke above resistance levels following Google’s cloud division (GOOGL) announcement of its participation as a validator and infrastructure provider on the Flare blockchain. However, this surge met considerable selling pressure near the resistance, leading to the formation of a market top. Consequently, FLR’s price has seen a significant decline and is now aiming to stabilize its momentum.
Flare’s Funding Rate Touches The Lowest Point
Flare token’s price has experienced noteworthy volatility, leading to a significant move in its on-chain metrics, unlike anything observed before. Data reveals that Flare recently faced resistance at the $0.025 mark due to a rising wave of profit-taking by holders, resulting in a sharp price decline.
Consequently, its funding rate has recently plummeted to its lowest point, reaching -0.55%. This declining trend in funding rates indicates a surging dominance of short positions, as short traders are now willing to compensate long traders. The current Flare funding rate shows the growing bearish momentum, raising the possibility of further price declines in the hours ahead.
Flare’s open interest is currently near its all-time high, trading at $3.3 million, which is a 300% increase from its recent low point. This significant rise in open interest may hold investor confidence and help keep the price above the current support level. Flare, self-described as “the blockchain for data,” offers developers access to decentralized data through its Oracle system.
The price of its FLR token surged by 40% following the partnership announcement with Google. However, the token is now in a steep correction phase, and the long-short ratio has declined below 1, currently at 0.6284, with 62% of total positions predicting a further drop in price.
What’s Next For Flare Price?
Flare price recently faced a rejection near its resistance line at $0.025 and declined steeply toward its moving averages. However, buyers are defending a drop below the EMA20 trend line. As of writing, FLR price trades at $0.02, declining over 7.2% from yesterday’s rate.
The RSI line has dropped from its overbought region; however, it now trades above the midline at level 56, suggesting a minor advantage for buyers.
Attempts at recovery might encounter resistance at the 20-day EMA. A decline from this level would suggest a change in market sentiment to selling during rallies. Under this scenario, the Flare price could consolidate at around $0.016.
On the other hand, if buyers successfully rebound the price above the EMA line, it could indicate an end to the corrective phase. This would potentially set the price to hold buying momentum and aim for a break above immediate Fib channels.
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