Flow Token Price Rises 67% In Jan On Bullish Developments

Key Takeaways:

  • Flow network announced several bullish updates that helped push prices up.
  • However, FLOW price saw an increase in bearish momentum.
Flow token price rallied alongside the wider crypto market on back of bullish developments.
Flow token price rallied alongside the wider crypto market on bullish developments.

NEW DELHI (CoinChapter.com) — Blockchain platform Flow’s native token FLOW had a bullish first month in 2023. The Flow token price rallied more than 67% in Jan as the network announced some bullish news.

On Jan 25, Flow Network announced that NFT ecosystem Doodles would launch its Doodles 2 project on the Flow blockchain. The success of the Doodles project has resulted in increased anticipation for Doodles 2.

Thanks to Flow’s powerful composability, holders can have Doodles that are portable and interoperable across social platforms, gaming worlds, live events, streaming content, retail activations and other imaginative moments.

Doodles CEO Julian Holguin said in the announcement.

The Doodles project features 10,000 unique collectibles on the Ethereum blockchain. Doodles attracted a large community of collectors, becoming one of the most recognizable brands in the Web3 ecosystem.

The Doodles project launching on the Flow network would help attract buyers, boosting FLOW token price.
The Doodles project launching on the Flow network would help attract buyers, boosting the FLOW token price.

As a result, a Doodles project on the Flow Network would act as a bullish cue for the underlying token, as minting the NFTs would likely require FLOW token transactions. Moreover, Doodles 2 project brings new features like customizable wearables with “varying tiers of rarity.”

In other Flow token news, the team released new updates for its developer community. The upgrade would introduce simplified project setup tools and “Flow super commands for enhanced productivity.”

Furthermore, the network has planned to unlock a portion of its total supply in Feb 2023, per the Flow Token release schedule. Often, blockchain firms announce bullish updates around token unlock events since token unlocks are usually bearish cues.

Token unlock events might result in selloffs as early investors might unload their holdings to book profits. However, a bullish announcement might help boost Flow token price despite the increased supply. The resulting FOMO helps increase the buying pressure for the token.

Bearish Momentum Increasing For The Flow Token Price

Meanwhile, FLOW coin price failed to remain above the 100-day EMA (blue wave), reflipping the level from support to resistance in just a few days. The downtrend began on Jan 23 after the Flow token price reached its highest level since Nov 2022.

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Furthermore, FLOW price dropped more than 15% on Jan 30 before spiking 11.1% on Jan 31 to form a daily high of $1.08. If the recovery continues, the Flow coin price might rise to target the 100-day EMA resistance near $1.13.

FLOWUSD daily chart with MACD
FLOWUSD daily chart with MACD. Source: Tradingview.com

Moreover, a break and hold above immediate resistance might help the FLOW/USD trading pair rise to resistance near $1.26 before downside corrections pare gains.

On the other hand, the momentum oscillator MACD forecasted indicated an increase in bearish momentum for the Flow token.

Negative bars on the MACD histogram are expanding, indicating the MACD line (difference between 12-day and 26-day EMA) is moving away from the MACD signal line (9-day EMA of MACD). The MACD lines formed a bearish crossover on Jan 28; an indicator traders consider a sell signal.

Should the selloff continue, FLOW price might fall to test the 50-day EMA (purple wave) support near $0.99. Breaching the immediate support level could push the Flow token price drop to support near $0.9 before recovering.

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