After becoming the latest blockchain to provide support for Instagram’s nonfungible tokens (NFT), Flow (FLOW), recorded its best daily performance on August 4.
Insta-made FLOW rally
Mark Zuckerberg, Meta CEO, announced that Instagram has expanded its NFT support for 100 additional countries in Africa, Asia-Pacific and the Middle East on Aug. 4. In this way, Instagram users are able to post digital collectibles that were created on the Flow blockchain.
FLOW surged 54% after the high-profile integration, reaching an intraday high at $2.83 per token. It is interesting that the massive upside movement of the token was accompanied by a surge in daily trading volumes, which confirms the bullish trend.
Daily price chart for FLOW/USD Source: TradingView
As with any native blockchain asset, FLOW’s demand is tied to its adoption. FLOW is a legal tender in the Flow proof-of-stake environment for the following purposes.
StakingStaking rewardsTransaction feesAccount storage depositsCollateral for a stablecoin and DeFi productsParticipation in protocol governance and ecosystem development
This explains why the token was bullish in its response to Instagram’s adoption.
Not another 30% gain ahead?
FLOW sees a 30% increase in technical value from current levels.
FLOW’s recent price trends appear to have painted a bullish pattern called the “Bump-and-Run-Reversal (BARR) bottom” on its daily chart. The token is now in a breakout stage, with its upside target at the $3.20 level where the BARR bottom formed.
FLOW/USD daily chart with BARR setup Source: TradingView
Veteran analyst Tom Bulkowski says that BARR patterns are “surprisingly strong performers” with a 76% chance to meet its profit target. This raises FLOW’s potential for an additional 30% increase to $3.20. Strong fundamentals support this.
Related: “Metaverse” is a transformation that has been occurring for 20 years: Q&A with Forbes 30 Under 30 entrepreneurs and investors in 300+ cryptocurrency startups
FLOW’s bull run on the other hand has pushed its daily relative strengths index (RSI), above 70. This indicates that FLOW is more overbought, and there are increased sell-off risk.
com. You should do your research before making any investment or trading decision.