Flow Price Plummets 20% Amid $6 Million Withdrawal: What’s Next Flow price crashed by over 20% in the last couple of sessions snapping off the recent profits. The Open interest contracts have dropped by 40% in the last couple of sessions.
Flow price edged near to $0.55 after losing a significant 20% in the last couple of sessions. The recent fall has snapped off nearly 60% of the value that the crypto gained in the last month.
The tensions between the two countries Israel and Iran have escalated uncertainty in the world markets. Due to which the investors sentiment has shifted to a bearish side. The uncertainty has hit the altcoins and Blue chip cryptocurrencies as well.
The market leaders Bitcoin and Ethereum have also noted a significant fall losing 7 to 9% of their value in the last couple of sessions. Additionally, the altcoins which were struggling to recover have hit the hardest due to less number of buyers. Open Interest Data Dropped By Over 40% The recent fall in the price might have been escalated by the drop in the derivatives traders as they rushed to cover their positions. As reported by an on-chain analytics website app.santiment.net, the Open Interest contracts have reduced by a significant 40%.
A sharp drop in the Open interest contracts in the last couple of sessions suggest a long unwinding by the short term derivatives traders and investors. The OI data has dropped from $14 Million to $9 Million losing 40% in the recent sessions indicating a fear among the investors.
Furthermore, the transaction volume has dropped by 27.21% to $37.24 Million a day. Flow currently ranks 68th with a live market capitalization of $845.31 Million. The volume to market cap at 4.52% suggests low volatility in the crypto. Can Psychological $0.5 Level Hold The Flow? From a price action point of view, a strong bearish move has snapped off most of the profits incurred in July. Flow has started August on a negative note losing over 20% in the first three sessions.
Also, the long term trend tilts to the bearish side as the price lags by nearly 30% from the 200 day Exponential moving average suggesting a long term bearish outlook. Also, the price hovers below the 20 and 50 days EMA indicating a weakness in the short term as well.
As per the analysts, the price may continue to lower until the most recent support of $0.5 level. The sellers are rising the momentum which may drag the price even lower towards the $0.45 level.
At the time of writing, The RSI line was placed close to 38 points and that of the 14 day SMA line was placed close to 52 points. A bearish crossover between both the lines suggest a bearish outlook as per the indicator.
Flow price dropped 20% to $0.55, erasing over 60% of last month's gains. The tensions between Israel and Iran have created market uncertainty, affecting altcoins and blue-chip cryptocurrencies. As a result,, the derivatives traders rushed to cover positions, reducing Open Interest contracts by 40%, from 14M to 9M.
Currently, Flow price hovers below key EMAs, indicating a bearish trend. Analysts predict further decline to $0.5 or even $0.45. The RSI is at 38, and the 14-day SMA is at 52, suggesting a bearish outlook.
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