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With an intraday pullback on the verge of undermining a breakout rally, will Flare sustain dominance at $0.016 for a prolonged uptrend?
As the bleeding crypto market inches closer to the $2 trillion mark, Flare (FLR) drops 7%, resulting in a bearish piercing candle. After a brief bullish rally, signs of exhaustion point to a potential decline toward the $0.014 support level.
The key question now is whether Flare can achieve a close above the consolidation range, signaling the potential for a breakout.
Flare Uncertain Near $0.016
Following a massive correction after failing to sustain dominance above the $0.050 psychological mark, FLR found crucial support at $0.014. During the downfall, FLR’s price action formed a falling wedge pattern.
In the consolidation phase, which ranged from $0.013 to $0.016 from early August to early October, FLR managed to break above the falling wedge.
On October 2, FLR surged by 20%, producing a bullish engulfing candle that surpassed the overhead resistance. This move pushed the price past the 50-day EMA and the $0.016 mark, reaching a 24-hour high of $0.017 on October 3.
However, profit-taking and supply pressure from bullish exhaustion led to a 7% intraday drop, bringing the price back down to the 50-day EMA. FLR is currently trading at $0.01614 and struggling to secure a close above its resistance ceiling.
Will Breakout Run Cross $0.020?
As the overhead resistance limits the breakout rally and leads to a failed breakout run, the possibility of a downtrend continuation within the consolidation range has resurfaced.
However, the growing bullish divergence in the daily RSI line teases a bullish continuation with a gradual higher-high and higher-low formation. According to Fibonacci retracement levels, the next key resistance sits at $0.02320.
In addition, the 100-day and 200-day EMAs, at $0.01791 and $0.02077, respectively, are important dynamic resistance levels to watch. On the downside, FLR has support at $0.01426, $0.01341, and the psychological $0.012 level.