Movement (FLOW) logged its greatest every day efficiency on Aug.4 after turning into the most recent blockchain to support Instagram’s nonfungible token (NFT) features.
Insta-made FLOW rally
Meta CEO Mark Zuckerberg announced on Aug. 4 that Instagram had expanded its NFT help to 100 extra international locations in Africa, the Asia-Pacific, the Center East and the Americas. Because of this, extra customers can publish digital collectibles minted on the Movement blockchain on Instagram.
The high-profile integration helped FLOW surge 54% to succeed in an intraday excessive of $2.83 a token. Apparently, the token’s large upside transfer accompanied a spike in its every day buying and selling volumes, confirming some weight behind the bullish pattern.
Like all blockchain native asset, the ups and downs in FLOW’s demand are tied to the adoption of its dad or mum chain. Usually, FLOW serves as a authorized tender inside the Movement’s proof-of-stake ecosystem for the next functions:
- Staking rewards
- Transaction charges
- Account storage deposits
- Collateral for a stablecoin and DeFi merchandise
- Participation in protocol governance and ecosystem growth
That explains the token’s bullish response to Instagram’s adoption.
One other 30% beneficial properties forward?
From a technical perspective, FLOW eyes one other 30% rally from its present worth ranges.
FLOW’s latest worth tendencies seem to have painted a bullish sample referred to as the “Bump-and-Run-Reversal (BARR) bottom” on its every day chart. Now, the token has entered a breakout stage with its upside goal close to the extent the place the BARR backside’s formation started at round $3.20.
In response to veteran analyst Tom Bulkowski, BARR patterns are “surprisingly good performers,” with a 76% probability of assembly its revenue goal. That raises FLOW’s potential to rise one other 30% to $3.20, additional supported by robust fundamentals.
On the flip facet, FLOW’s newest bull run has pushed its every day relative power index (RSI) above 70, or overbought territory, which suggests heightened sell-off dangers.
The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it is best to conduct your individual analysis when making a call.