Flare [FLR] joins the market’s top gainers, delivering a staggering 15% rally, with the price trading at about $0.0065 at the time of writing.
Market analysis shows that there is a high chance the rally may not stop here and, in fact, could still create a new high depending on certain key structural hurdles it can overcome on the chart.
Bullish structure, but hurdle surfaces
FLR’s structural pattern is presently optimistic, as the asset’s price pattern over the past couple of days has shaped into a cup-and-handle pattern.
This has been a bullish precursor, especially when the price breaches the neckline. In the case of FLR, this is the horizontal resistance level at $0.0075, which could pave the way for further upside on the chart.
The bullish outlook has three key levels, with the closest being $0.0082, followed by $0.0084, while the most bullish outcome places FLR at $0.010 on the chart. Momentum will play a major role in determining where the price rallies next.
However, the major hurdle remains overcoming the neckline resistance, which could determine whether the market witnesses a solid run or not. Regardless, a rally from the current price level to the neckline would deliver roughly 10% upside.
Indicators show strength
Overall, the indicators show that the market has strengthened, with momentum supporting the possibility of a continued rally.
At the time of this report, the Aroon Indicator, a trend analysis tool, shows that the Aroon Up line, marked in orange, is above the Aroon Down line, with readings of 92.86% and 7.14%, respectively.
Whenever these lines are set apart, with the Aroon Up line higher than the Aroon Down line, there is a higher chance that the price will continue to form higher swings.
However, in this case, it is worth noting that the most bullish outlook comes when Aroon Up reaches 100% while Aroon Down sits at 0.00%.
The Accumulative Swing Index (ASI) has also shaped up in a way that indicates the market is bullish, with the ASI trending upward on the chart.
Right now, the ASI has ticked slightly lower, marked in red. However, this is more likely a reflection of a pullback than the beginning of a wider market correction.
Spot market could impact the trend
Spot market traders could play a decisive role in ensuring that the asset continues to rally. At the time of this report, there has been a massive surge in demand for FLR.
Data from CoinGlass shows that netflow reached roughly $325,000, suggesting that more of the asset has moved out of exchanges and into private wallets for long-term holding.
If this movement of capital is sustained, with outflows continuing to outweigh inflows, it could support FLR’s push toward a new high in the near term.
Final Summary
- FLR’s bullish cup-and-handle structure puts $0.0082 and $0.0084 in focus, with $0.010 possible if momentum strengthens.
- Strong Spot demand and rising outflows could support FLR’s rally as buyers push the price toward a new high.
