FLOW Price Prediction: What’s Next After Gaining 50% in 7 Days?

Key Insights:

• The native token of the Flow blockchain has soared 51% in the last seven days.
• FLOW has moved above its 100-day simple moving average and the RSI has entered the overbought zone.
• The coin ranks 28th in the list of cryptocurrencies worldwide by market capitalisation at $3.1 billion. 

FLOW was one of the best performing cryptos last week and has displayed mammoth gains over the last thirty days, rising nearly 83%.

This rally can be attributed to an announcement regarding the blockchain’s partnership with Meta Platforms.

The project itself enables developers to create and trade non-fungible tokens (NFT), while its native cryptocurrency FLOW is key to maintaining and operating the Flow blockchain. Flow has gained traction as it aims to create many subdivisions of its network to allow for the total work to be split across nodes, with each node validating a subset of transactions.

Flow-based NFTs

In the wake of Meta Platforms’ decision to leverage the blockchain to expand its non-fungible token initiative to over 100 countries, FLOW has soared 51% in the last seven days. More specifically, Meta Platforms‘ subsidiary Instagram will provide the back-end infrastructure for international expansion of a recently piloted digital collectibles feature on its photo and video-sharing platform.

FLOW ran into buying pressure and was up 38%, trading at $2.62 per token, on the day of the announcement. This represented a new two-month high for the coin.

The Flow blockchain crypto subsequently moved above its 100-day simple moving average (SMA) and trading volumes increased by a whopping 1253%. In addition, FLOW’s price rally is backed by a triple-digit rise in futures open interest across exchanges such as Binance, according to Coinglass data.

Instagram also announced support for Coinbase wallet and Dapper wallet as third-party wallets compatible for use as part of its expansion plan.

While there is much to celebrate, investors can zoom out to see that the cryptocurrency’s longer-term performance has been dire, with FLOW down more than 93% from its all-time high (ATH) price of $46.16 achieved on April 5, 2021.

FLOW is currently trading at $3.02 and ranks 28th in the list of cryptocurrencies worldwide by market capitalisation at $3.1 billion. Its price is up 14% in the last 24 hours and the relative strength index (RSI) has entered the overbought zone. Resistance is at $4.03 while support can be found at $1.24. If the price falls below the 20-EMA, FLOW could drop to the Fibonacci retracement level of $2.50. A break below this level could see the token plummet to $2.00.

With NBA Top Shot, CryptoKitties and Dapper wallet among the innovations that Flow has brought to the market, its newest partnership has been widely anticipated by the industry and many are wondering, where will Instagram take FLOW?

Technical Indicators