Flow price is in a consolidation phase even as demand for its blockchain keeps rising. The token is trading at $2.88, where it has been throughout this week. The price is also higher than last week’s low of $2.20. Its market cap has now dropped from its all-time high of over $5.1 billion to $2.9 billion. So, is Flow preparing a massive rally or dive?
Flow is a blockchain platform that has become popular among developers. In the past few months, the number of applications in its ecosystem has been growing rapidly. Developers have used it to build apps across multiple industries like decentralized finance, payments, and games, among others. For example, it was used to build Alchemy Pay, a payment platform that allows people to pay using digital currencies.
Further, Flow has also been embraced by Meta Platforms to power its digital solutions. Other companies that are using Flow are YouTube, Joyride, Playco, OneFootbal, and Flowty, among others. Recently, Flow announced that it had launched a new $725 million to lure developers to its ecosystem. This week, it was reported that Yuga Labs was considering moving ApeCoin from Ethereum to either Flow or Avalanche.
Flow price prediction
Flow has had a similar price action with other cryptocurrencies like Bitcoin and Ethereum. Its sell-off accelerated last week, and then it formed a hammer pattern. After rebounding, the coin has been moving sideways and has formed what looks like a triangle pattern shown in red. Due to this consolidation, the coin is hovering along with the 25-day and 50-day MAs while the Relative Strength Index (RSI) has moved to the neutral level of 50.
Therefore, there is a likelihood that the Flow price will move out of this range soon. The most likely scenario is where the price makes a bearish breakout because this triangle seems like it is part of a bearish pennant. A move above the resistance at $3.2 will invalidate the bearish view.
