Flow (FLOW) recorded its best daily performance on August 4 after becoming the latest blockchain to support Instagram’s NFT (non-fungible token) features.
The FLOW rally made by Insta
Meta CEO Mark Zuckerberg announced on August 4 that Instagram had expanded its support for NFTs to an additional 100 countries in Africa, Asia-Pacific, the Middle East, and the Americas. As a result, more users can post digital collectibles minted on the FLOW blockchain to Instagram.
The high-profile integration helped FLOW surge 54% to hit an intraday high of $2.83 per token. Interestingly, the token’s massive bullish move accompanied a spike in its daily trading volumes, confirming some weight behind the uptrend.
Like any native blockchain asset, the ups and downs in demand for FLOW are tied to the adoption of its parent chain. In general, FLOW serves as legal tender within the Flow proof-of-stake ecosystem for the following purposes:
- staking
- Staking rewards
- Transaction fees
- account storage deposits
- Collateral for a stablecoin and DeFi products
- Participation in the governance of the protocol and in the development of the ecosystem
That explains the token’s bullish response to Instagram adoption.
Another 30% profit ahead?
Technically, FLOW is facing another 30% rally from its current price levels.
FLOW’s recent price trends seem to have painted a bullish pattern called “Bump-and-Run-Reversal (BARR)” on its daily chart. Now, the token has entered a breakout stage with its upside target near the level where the BARR bottom formation began around $3.20.
According to veteran analyst Tom Bulkowski, BARR patterns are “surprisingly good,” with a 76% chance of hitting your profit target. This raises the potential for FLOW to rise another 30% to $3.20, further supported by strong fundamentals.
On the other hand, FLOW’s latest bull run has pushed its RSI above 70 points, i.e. overbought, suggesting a higher risk of selling.
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