thecoinrepublic.com
Flow price edged near to $0.55 after a sharp 20% drop in the last couple of sessions. The recent fall has snapped off nearly 60% of the value that the crypto gained in the last month.
The tensions between the two countries, Israel and Iran, have escalated uncertainty in the world markets. Due to this the investors’ sentiment has shifted to a bearish side. The uncertainty has hit the altcoins and blue-chip cryptocurrencies as well.
Bitcoin and Ethereum also noted a significant fall. They lost 7 to 9% of their value in the last couple of sessions. Additionally, the altcoins that were struggling to recover have hit the hardest due to less number of buyers.
Open Interest Data Dropped by Over 40%
The drop in the derivatives traders might have escalated the recent fall in the pricers as they rushed to cover their positions. As reported by Santiment, the Open Interest contracts have been reduced by 40%.
A sharp drop in the Open interest contracts in the last couple of sessions suggested a long unwinding by the short-term derivatives traders and investors.
The OI data has dropped from $14 Million to $9 Million, losing 40% the recent sessions. It reflected fear among the investors.
Furthermore, the transaction volume has dropped by 27.21% to $37.24 Million a day. Flow currently ranks 68th with a live market capitalization of $845.31 Million. The volume to market cap at 4.52% suggests low volatility in the crypto.
Can Psychological $0.5 Level Hold the Flow?
From a price action point of view, a strong bearish move has snapped off most of the profits incurred in July. FLOW started August on a negative note, losing over 20% in the first three sessions.
Flow Price Plummets 20% Amid $6 Million Withdrawal: What’s Next by Ritika_TCR on TradingView.com
Also, the long-term trend tilts to the bearish side as the price lags by nearly 30% from the 200-day EMA. It suggested a long-term bearish outlook. Also, the price is below the 20 and 50-day EMAs, reflecting short term weakness.
As per analysts, the price may continue to lower until the most recent support of $0.5 level. The sellers are rising the momentum which may drag the price even lower to the $0.45 level.
When writing, the RSI line was placed close to 38 points, and the 14-day SMA line was placed close to 52 points. A bearish crossover between both lines suggested a bearish outlook per the indicator.
FLOW dropped 20% to $0.55, losing over 60% of last month’s gains. The tensions between Israel and Iran have created market uncertainty, affecting altcoins and blue-chip cryptocurrencies.
As a result, the derivatives traders rushed to cover positions, reducing Open Interest contracts by 40%, from $14 Million to $9 Million.
Currently, FLOW is hovering below key EMAs, indicating a bearish trend. Analysts predict a further decline to $0.5 or even $0.45. The RSI is at 38, and the 14-day SMA is at 52, suggesting a bearish outlook.