Flow price bounced back on Tuesday as cryptocurrency prices rebounded. The token rose to a high of $2.05, which was the highest level since August 26th. It has risen by more than 25% from its highest level this week, giving it a market cap of over $2 billion, making it the 33rd biggest cryptocurrency in the world.
What is Flow, and why is it rising?
Flow is one of the biggest blockchain projects in the world. It is widely used by developers who are building decentralized applications (dApps) in all industries. Flow is a major player in key industries like decentralized finance (DeFi) and non-fungible tokens (NFT).
It has been used to build some of the best-known products like Alchemy Pay, Joyride, Rarible, Shopify, YouTube, and Instagram, among others. Flow price is rising on Tuesday as demand for its NFT products rises. Data compiled by Cryptoslam shows that total NFT sales rose by 43% in the past 24 hours to over $271k.
This makes it the fourth-biggest NFT player in the industry after Ethereum, Solana, and ImmutableX. Flow is rising as investors buy the recent dip since it dropped by over 40% from its highest level in August. The rally is in line with the performance of other cryptocurrencies like BTC and ETH.
Flow price prediction
The four-hour chart shows that the Flow crypto price rose to a high of $3.23 in August this year. It then crashed hard in the past few days as cryptocurrencies and stocks retreated, and the US dollar index surged to the highest level in over 20 years. The coin has bounced back in the past few hours as investors bought the dip.
Flow price remains above the ascending trendline shown in red. It also remains below the 25-day and 50-day moving averages, while the Money Flow Index (MFI) has moved close to the overbought level. Still, it seems like this rebound is a dead cat bounce, meaning that the sell-off will continue in the coming days.
If this happens, the next key level to watch will be at $1.70, which was the lowest level this week. A move above the resistance level at $2.20 will invalidate the bearish view.