For the past two months, Flare [FLR] has been trading within a set range. This range spanned from $0.0143 to $0.0167, with the midpoint resting at $0.0155. On the 2nd of October, the token experienced a significant uptick in trading volume.
Accompanying this surge was a sharp increase in prices. FLR soared from the lower bounds of the range, marking a breakout on the very same day but has since seen a downturn.
Failure to Break Out of the Established Range
Falling 12.42% from its recent peak of $0.018, FLR retreated back within the range, testing the mid-range level for support.
Analysis of the A/D indicator was conducted to assess the likelihood of the price trend resuming its upward trajectory.
Since mid-August, A/D has been gradually declining. Despite the spike on the 2nd of October, it failed to surpass the August highs.
The signals from this volume indicator painted a grim picture – Flare may not be on the brink of reclaiming its March levels.
The attempted breakout from the range could be deemed unsuccessful as the range highs were not successfully converted into support levels.
While FLR bulls might make another attempt, caution is advised for traders and long-term holders until the volume indicator shows signs of improvement.
Increase in Social Engagement Post Price Activity
The weighted sentiment observed a surge, hitting levels not seen since January, indicating a wave of positive social media interactions following Flare’s breakout from the range.
Social volume also witnessed a noticeable uptick.
On the flip side, development activity has been decreasing lately and is significantly lower than the peaks witnessed in July and September, possibly raising concerns for long-term investors.
Disclaimer: The views expressed do not constitute financial, investment, trading, or any other form of advice and represent the individual opinion of the author