Flare (FLR) Indicates Bullish Crossover, Targeting 20% Price Increase

The FLR price appears poised for additional gains in the coming days, following a confirmed bullish SMA crossover on the daily chart.

According to crypto.news, Flare (FLR) soared to an 8-month high of $0.028 on September 24, currently sitting at $0.026 at the time of writing. The altcoin is now up 30% from its monthly low and has surged by 136% from its year-to-date low.

Today’s spike in FLR aligns with a significant rise in its daily trading volume, suggesting heightened trader interest. Over the past 24 hours, the token’s trading volume increased by over 350%, matched by a 335% rise in derivatives volume, which reached $15.8 million, as per CoinGlass.

During this same period, the open interest in the FLR futures market climbed by 23.8%. Generally, an increase in open interest along with a price rise signals a strong trend backed by new liquidity.

The long/short ratio for FLR exceeds 2.4 across all major timeframes, further supporting the optimistic outlook, as more traders are gearing up for a price increase.

Much of this excitement stems from the launch of FXRP, the first live iteration of its FAssets protocol. This development enables XRP holders to mint a wrapped version of XRP on the Flare network for use in decentralized finance applications.

This advancement has positively impacted the token’s social sentiment, according to data from Santiment, and likely garnered the attention of the XRP community, which actively supports initiatives that enhance their native asset’s utility.

On the daily chart, FLR has broken free from its trading range of $0.023-$0.025, which it occupied for the past week. This breakout implies that bullish sentiment is prevailing as selling pressure diminishes following the FXRP announcement.

The 20-day simple moving average has now surpassed the 50-day SMA, creating what’s recognized as a bullish crossover in technical analysis. Traders often view this as a preliminary signal that the asset is shifting from a consolidation phase to an upward trend.

Moreover, momentum indicators like the MACD lines are trending upwards. In technical analysis, this suggests that market strength is returning after a period of weakness.

With a currently favorable community sentiment and the RSI not yet hitting overbought levels, the potential for further upside remains strong in the near term.

Thus, FLR is likely to target $0.032, a level corresponding to the 61.8% Fibonacci retracement, situated 23% above the current price.

If the bullish momentum starts to slow, key support for the token can be found at $0.023, which aligns with its 20-day SMA.