Key Takeaways:
- Flow blockchain's same-name token surged over 40%.
- The rally might reverse based on declining trading volumes.
- Partnership with Instagram boosted the token.
YEREVAN (CoinChapter.com) – Web3 blockchain token FLOW jumped 40% in the New York session on Aug 4 and traded at $2.58 after Bitcoin-like consolidation since mid-June. Moreover, the digital chart flashed bearish cues, but the Instagram partnership helped FLOW defy the trend.
Will the FLOW Token Rally Last?
In addition, the digital asset’s trading volume shot 1,270% in the previous 24 hours and stood at over $672 million late on Thursday.
Also read: VeChain tries to create unnecessary hype over ‘partnership’ with Amazon.
However, a closer look at the two-hour chart revealed a possible reversal ahead. The trading volumes have been declining since the earlier spike. Thus, the cool-off in trader expectations could forecast a looming rally reversal.
Also read: 3 reasons why Bitcoin price has bottomed out — expert.
Notably, the blockchain boasts its decentralized nature. However, while trading volumes went up, the number of addresses holding FLOW decreased, according to coin tracker CoinMarketCap.
For Flow to achieve its full potential, a safe and sustainable distribution strategy is critical: we must get FLOW token into the right people’s hands. […] We recognize that a healthy and sustainable distribution strategy is essential for making the Flow blockchain successful in the long term.
reads the whitepaper.
Instagram Partnership Behind The Surge
Meanwhile, as Flow announced on Aug 4, it will become “one of the first blockchains to be supported by Meta.” The latter will introduce NFTs to “collectors and creators” on Instagram, minted on Flow.
The feature includes connecting a digital wallet, sharing digital collectibles, and automatically tagging the creator and collector. There will be no fees associated with posting or sharing a digital collectible on Instagram.
further explained the Meta blog post.
Also read: Crypto exchange ZB Hacked — nearly $5M stolen by hackers.
Meta noted that the feature would see “international expansion to 100 countries” in Africa, Asia-Pacific, the Middle East, and the Americas. Additionally, the platform will support wallet connections with the Coinbase Wallet and Dapper.
