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Trapped in a falling wedge, Flare teases a breakout rally with a double bottom reversal at $0.018, bolstering chances of the rally pushing FLR to $0.035.
With a bearish dominant price trend in the daily chart, Flare’s value has declined remarkably from the 52W high of $0.052. Failing to hold the $0.050 psychological milestone, the altcoin drops 62% to hit the $0.018 floor.
However, the recovery chances for the FLR token are resurfacing in the most unlikely time. With the broader market under intense correction, FLR teases a double bottom reversal to reinstate the bull run. Will Flare surge like a phoenix in a bear market to hit $0.035 this week?
Flare’s Last Attempt At $0.018 To Overcome Supply Pressure
The declining trend in the daily chart breaks under all the crucial EMAs (20,50,100,200) and multiple support levels to hit $0.018. Further, the contracting volatility forms a falling wedge as Flare approaches the bottleneck portion.
The recent bear cycle within the wedge accounts for a 9% drop and four consecutive bear candles to test the $0.018 support. However, the previous drop at this support teases a double bottom reversal for a bullish bounce back.
Currently, the Flare token trades at $0.01839 with a visible lower price rejection in the daily chart. Hence, despite the intraday fall of 4.02%, the reversal chances are significant at the crucial support level.
The daily RSI line shows a positive divergence as it approaches the oversold boundary, supporting the bullish uprising. Conversely, the bearish alignment of the crucial daily EMAs and the constant rejections from the 20D EMA highlights strong overhead supply pressure.
Will Buyers Overcome the Overhead Supply Pressure?
As per the daily candle, the intraday price action will be crucial in determining Flare’s fate. A lower price rejection sustaining dominance above $0.018 will boost the altcoin for a breakout.
According to the Fibonacci levels, the reversal-led breakout rally could hit the 38.20% or 50% Fib level for a healthy pullback. Hence, the next target levels for the altcoin are $0.0311 and $0.03510.