FLR price could be poised for more gains in the coming days after confirming a bullish SMA crossover on the daily chart.
Summary
- FLR price shot up to an 8-month high of $0.028 on Sep. 24.
- The token rallied following the debut of FXRP, the first live product of its FAssets protocol.
- A bullish crossover was confirmed on its daily chart.
According to data from crypto.news, Flare (FLR) rallied to an 8-month high of $0.028 on Sep. 24 before settling at $0.026 at the time of writing. At its present price, the altcoin is up 30% from its monthly low and 136% above its lowest point this year.
FLR’s surge today coincides with a significant spike in its daily trading volume, reflecting that demand among traders has surged. Over the past 24 hours, the token’s trading volume rose more than 350%, with a similar jump in derivatives volume, which climbed 335% to $15.8 million, according to data from CoinGlass.
During the same period, open interest in FLR’s futures market rose 23.8%. When open interest rises alongside an upside move, it is typically a sign of a strong trend that is being supported by fresh liquidity.
FLR’s long/short ratio at over 2.4 across all major time frames also confirms the bullish bias, as more traders were positioning for a bullish move.
Much of this enthusiasm stems from the launch of the first live instance of its FAssets protocol with FXRP. With this debut, XRP holders are able to mint a wrapped version of the XRP token on the Flare network that can be deployed across decentralized finance protocols.
The development has helped improve the token’s social sentiment, according to Santiment data, and also likely drew the attention of the XRP community, which is known to be highly active in supporting projects that expand the utility of their native asset.
On the daily chart, FLR price has broken out from its consolidation range of $0.023-0.025, within which it had been trading over the past week. The breakout suggests that bulls have grown dominant over the market as selling pressure waned following the FXRP news.
The 20-day simple moving average has now crossed above the 50-day SMA, which forms what is known as a bullish crossover in technical analysis. Traders typically view this as an early signal that the asset is beginning to move out of consolidation and into an uptrend.
On top of that, momentum indicators like the MACD lines have pointed upwards. In technical analysis, this metric also points to the market gaining strength back after recent weakness.
With community sentiment currently supportive and the RSI yet to move into overbought territory, the possibility of an upside continuation remains on the table in the short term.
Hence, FLR will most likely rally to $0.032, a target that aligns with the 61.8% Fibonacci retracement level. The target lies 23% above the current price level.
Meanwhile, in case the bullish momentum surrounding FLR fades out, the key support for the token lies at $0.023, its 20-day SMA.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
