YEREVAN (CoinChapter.com) – Flare token (FLR) stood at $0.24 on Jan 9 after plunging nearly 50% in 48 hours on the Bitrue exchange, ahead of the listing on MEXC exchange and the token distribution event at 23:59 UTC on Jan 9.
Notably, Bitrue was the first exchange to enable the trading of FLR-pegged “I owe you” tokens, or IOUs, currently listed by over 50 exchanges. Meanwhile, a more detailed view of the FRL daily chart promises a halt in the plunge. Here’s why:
Flare token (FLR) charts spell recovery
As mentioned, the FLR token price plunged 50% in two days, despite the ubiquitous relief rallies throughout the digital asset sector. However, the coin held on to significant support at the current $0.23. Moreover, the oversold relative strength index (RSI) could lead to recovery.
In short, the relative strength index is a gauge of the best market entry and exit points. When the oscillator charts are above 70, traders can consider the asset ‘overbought’ and pull their funds, expecting a decline.
Conversely, when the RSI is below 30, the token can attract more attention as an ‘oversold’ asset. At this point, traders could consider cashing in, expecting price appreciation.
If FLR manages a relief rally based on the oversold RSI, the next FRL price target will be $0.28. If not, the token could bottom out at $0.20.
Meanwhile, the reasons behind the sudden price plunge and the possible recovery are noteworthy.
FLR token listing on MEXC and more
As mentioned, the Singapore-based crypto exchange MEXC Global announced its FLR listing on Jan 9.
“MEXC will list Flare (FLR) in Innovation Zone and open trading for the FLR/USDT trading pair,” the announcement specifies the timeline. The deposit is already open as of Jan 9, 13:15 UTC; the FLR/USDT trading will start at 04:00 UTC on Jan 10, while the withdrawals will be open at 04:00 UTC on Jan 11.
During the activity period, users who deposit FLR with a net deposit of no less than 10 USDT worth of FLR could share a total of 500 MX prize pool in proportion to the net deposit amount. Users who deposit FLR with a net deposit of no less than 50 USDT worth of FLR could share a total of 1,500 MX prize pool in proportion to the net deposit amount.
read the announcement.
FLR token distribution on Jan 9
Additionally, Flare token’s official Twitter page announced the token distribution at 23:59 UTC on Jan 9. XRP users who registered for the distribution in 2020 will participate. Flare has elected to airdrop its token to XRP holders over 36 months to bootstrap its new network and ensure stability. Initially, 15% of the total supply will be allocated on Jan 9, followed by monthly disbursement.
According to the “distribution map,” 52 exchanges have already confirmed their support. Meanwhile, Binance commented that they are “still reviewing” the request.
Binance.US is currently reviewing FLR through the same process as all other coins and tokens on our platform to ensure it meets our high listings standards. We are working diligently to complete that review process in 2023.
said the platform’s customer support.
So why did the Flare token tumble?
Given the positive developments for the token, many traders would have expected price appreciation. Instead, the FRL/USD exchange rate dropped nearly 70% before consolidating. One Twitter user called the occurrence a “usual pre-event dump,” while another noted that the distribution started “exactly how everyone thought it would.”
Generally, such dumps are orchestrated to bag more tokens before large events, where the price is bound to grow. But, as another user commented, the plunge will also “prevent holders of XRP from selling FLR airdrops immediately.”
All the above information supports a bullish claim for Flare token (FLR) in the upcoming sessions. Once the trading starts on MEXC and with the token distribution hours away, FLR might be eyeing an upside to $0.28 and possibly $0.37.
Also read: Justin Sun Accused of Rug-Pulling Employees As Huobi Bankruptcy FUD Escalates.
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