James Atkins
Editor
Editor
In the past few weeks, Flow prices have been declining rapidly as cryptocurrencies struggle. The coin has crashed to a low of $1.8750, which is approximately 50% below its highest level in August. As a result, its market cap is now only $1.9 billion.
The question many investors are asking is whether Flow is a good buy at this point or if the sell-off is not yet over. Flow’s technical picture does not look good in the short term, as the coin has lost all its gains; from the summer rally.
Flow is an innovative blockchain project striving to be the best development platform for creators of high-quality applications. It operates on a proof-of-stake (PoS) basis, it is characterized by rapid speeds and transactions that are very affordable.
Flow is most well-recognized for its partnerships with major companies. A few examples include the NBA, UFC, NFL, LaLiga, Samsung, and Ubisoft.
According to Flow’s developers, there are currently 8,000 builders in its ecosystem. Additionally, it boasts over 13 million account wallets and more than two million transacting wallets.
The total volume of NFT sales in the ecosystem has risen significantly since late June. In particular, the network has seen strong growth in its NFTs, particularly as Instagram has integrated it.
According to CryptoSlam, ecosystem NFT sales totalled more than $15.8 million during the period. That was a rise from the previous two months’ totals of $11 million.
Flow has been successful in the world of DeFi. Information from its website says the total value locked in Flow-based apps and protocols has risen to over $3.7 million.
This growth was assisted by Increment Finance, a platform that permits people to borrow, deposit, earn interest on; and also trade digital assets.
The recent slump in Flow is in keeping with the fortunes of digital assets. Most coins, such as BTC and ETH, have seen a significant downturn in price as the US dollar index continues to rise.
Data Source: Tradingview
Flow has been in a strong bearish trend over the previous few weeks, according to the four-hour chart. The coin has eluded falling beneath the 25-day and 50-day moving averages along the way.
The Stochastic Oscillator has dropped below its oversold condition. It is now slightly above key support at $1.6731.
Thus, it is probable that the coin will continue decreasing since sellers are targeting the next key level of $1.50. If it increases past the resistance level of $2.20, that would be notable.
The MACD on the four-hour chart shows that the current bearish trend is strong. This means that Flow will likely continue falling in the near term.
On the four-hour chart, the RSI has moved below the oversold level. This means that there is a possibility of a minor correction in the near term. However, the overall trend is still bearish.
Therefore, Flow is expected to continue falling as sellers target key support levels at $1.50 and $1.20. A move above the resistance level at $2.20 will invalidate this bearish outlook.
Flow is a smart contract platform that enables fast and scalable games. It was launched in September 2020 by Dapper Labs, the team behind CryptoKitties.
The Flow blockchain uses a new programming language called Cadence. This allows developers to build on the platform without worrying about gas fees. In addition, it also supports multiple transaction types, including fungible tokens, non-fungible tokens, and digital assets.
The Flow network is powered by a new consensus algorithm called Proof-of-Stake Resource Allocation (PoSRA). This algorithm uses idle resources to secure the network and validate transactions. The Flow team is also working on a new scaling solution called Dappnet.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
