NOIDA (CoinChapter.com) — Flow Network has captured investors’ attention after its recent bull run put the token close to breaking above the $1 price mark. However, the token failed to hold on to the price level after bears started selling.
The Flow Network announced its plans to host its first hacker house at the ETHDenver community meet. The event can potentially help the blockchain platform forge new partnerships, with several projects already welcoming the event.
Per Flow’s announcement, the event will begin on Feb. 27 and last until March 3. However, it seems the token’s recent rally was largely due to the wider market’s bullish momentum. Buyers have been entering the market following the spot Bitcoin ETF launch-fuelled BTC rally.
FLOW Price Forms Familiar Bullish Pattern
The movement of the Flow Network token price has formed a bullish technical pattern called the ‘Falling Wedge,‘ likely triggering some bullish indicators for FLOW.
A pair of converging trend lines form the falling wedge pattern. The pattern occurs when an asset’s price makes lower highs and lower lows steeper than the highs.
The familiar pattern typically signals that a reversal to the upside is likely. Customarily, the price target for the pattern is equal to the widest distance between the trend lines at the start of the pattern added to the breakout point.
A breakout with substantial volume can signify strong market conviction, thereby increasing the likelihood of continuing the trend.
Per the rules of technical analysis, the FLOW price could spike over 144% to reach a theoretical price target near $2.34 if the pattern pans out.
Flow Network Bulls Pushing To Break Past $1
Meanwhile, bulls are trying to push the token’s price past the $1 resistance, a price level FLOW last closed above back in April 2023. However, the supply wall near $1 has continued to rebuff all recent uptrends of the token. The long upper wicks on recent daily candles continue to highlight the bearish pressure against FLOW.
Yet, breaking past the $1 resistance could help FLOW price rise to the resistance near $1.2 before retreating.
The overbought RSI, with a score of 72.92 on the daily charts, could act as a bearish cue for the token. Traders often consider the occurrence a sell signal since overbought RSI levels usually precede a bearish reversal or a consolidation phase for an asset.
To summarize, FLOW risks dropping to the resistance near $0.85 once the bull run fizzles out. Moreover, breaking below the immediate resistance could force the token to test the support near $0.725 before recovering again.
