FLOW prices slid on Thursday as traders settled their bullish bets on the lately bullish digital assets.
The FLOW / USDT exchange rate fell as much as 15.22% this morning in New York, a sharp reversal since Wednesday when the pair closed at a one-month high of $ 16.99 after a 43.87% rally. However, it continued its upward momentum in the early Asia Pacific session to hit $ 18.44 before correcting downward.
The sell-off on Thursday’s FLOW market was broadly based and synchronized with a massive downward correction on the cryptocurrency market. For example, Bitcoin, the flagship cryptocurrency that usually affects its digital asset competitors, has fallen more than 5% in the past 24 hours. The second best Ethereum lost more than 8% over the same period.
All in all, at 3:52 p.m. UTC, the cryptocurrency market lost $ 52 billion in an adjusted 24-hour period.
FLOW forms a classic bearish pattern
Further downside risks to FLOW came upon the appearance of a potentially bearish chart pattern known as head and shoulders.
In detail, Head and Shoulders are bearish reversal structures that appear as the baseline – also known as. Neckline – with three points. The middle peak is higher than the other two. The smaller peaks are more or less the same height.
Traders typically execute their orders below the clipping by calculating the down target based on the highest point of the head of the clipping. The distance is roughly how far the price could move after breaking below the neckline.
FLOW appears to be ticking all of the boxes so far, as shown in the table above. The cryptocurrency formed a medium peak – the head – above $ 18 and the other two – the shoulders – within a range of about half a cent. In the meantime, $ 14,522 served as a clipping.
Price broke below support level with slightly higher volume and continues to move lower into the US session. The profit target, according to Head and Shoulder’s technical description, should be near $ 11,567 based on the percentage distance between the head and the baseline (~ 20%).
The path of least resistance looks skewed on the downside on the daily chart as well.
FLOW / USDT holds $ 13.6682 as a last line of defense as its relative strength index shows signs of correction as it approaches its overbought level (70). Should the sell-off persist on market-wide downside pressure, the pair’s next support levels would be close to its 50-day simple moving average (50-day SMA; blue wave) and the 20-day exponential moving average (20-day EMA) appear ; the green wave).
The FLOW’s 50-day SMA-SMA is currently around $ 11.78 and its 20-day EMA is around $ 11.22. The head and shoulder downward target is exactly in the middle of the above moving averages.
Conversely, holding $ 13.6682 as support would increase the potential for FLOW to retest $ 18.42 as resistance, followed by an extended move up towards the range of $ 22.62-26.11.
VORTECS ™ Score mirrored green
Cointelegraph Markets Pro’s VORTECS ™ data, meanwhile, showed better prospects for the FLOW market ahead of the rally, with total trade and Twitter activity up 520% and 269%, respectively.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
The VORTECS ™ Score is currently relatively high at 78, having previously switched to green, rising from 63 to 64 early on July 8th before the price rose to over $ 18.
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