Flare sees gains as transactions rise, falling wedge pattern forms
Flare token price rose for two consecutive days and was the best-performing cryptocurrency on Aug. 15.
Flare (FLR) rose by over 7% on Thursday, Aug. 15, reaching a high of $0.016, up by over 21% from its lowest level this month. However, like other altcoins, it remains in a bear market after falling by over 70% from its highest point this year. It is also hovering near its lowest level since December last year.
Flare’s rebound occureding durin an otherwise boring day for cryptocurrencies. Bitcoin (BTC) remained below $60,000, even as U.S. stocks rallied after encouraging retail sales and manufacturing production data.
A likely reason for the FLR token’s rise is the increase in network transactions this month.
Data from Flarescan shows that Flare had over 952,000 transactions on Aug. 14, higher than the 922,000 it had on Aug. 1. Over time, Flare has handled over 343 million transactions.Â
Additional data shows that the Flare Network is performing modestly well. According to DeFi Llama, the total value locked in the network has jumped to a record high of over $13.6 million, a significant increase from $5.4 million at the start of the year.
The biggest players in the Flare ecosystem are Clearpool, Sceptre Liquid, Enosys, Kinetic, and SparkDEX. The first three are liquid staking platforms with over $38 million in assets.
A closer look at Flare’s daily chart suggests that it could be ripe for a comeback in the near term. The token has formed a falling wedge pattern, which is nearing its confluence level.
This pattern is formed by connecting the token’s lower lows and lower highs. Typically, a bullish breakout occurs when the two lines near their convergence. If this pattern materializes, FLR could jump to $0.03260, its highest point on June 6, which would represent a 100% increase from its Aug. 15 levels.
For this to happen, Flare will need more catalysts beyond its on-chain metrics. For example, it will require significant ecosystem news accompanied by a strong bullish breakout.
