Flamingo Finance (FLM) price increased by 200% on September 4th and 5th, but later retraced and confirmed a horizontal resistance level. The FLM price fell below the descending resistance line since April 2022. During this period, the price crossed the line several times but failed to close above it.
The movements created long upper wicks, which are considered signs of selling pressure. It is worth noting that each touch to the lines further weakened the price, despite the rejections. Therefore, a departure from the trendline may still be the most likely future price scenario. The weekly RSI is also rising. RSI is a momentum indicator used by investors to assess whether a market is overbought or oversold, helping them make decisions on accumulating or selling an asset. Readings above 50 and an upward trend indicate that bulls still have an advantage, while readings below 50 indicate the opposite.
The indicator created a bullish divergence, where a momentum increase accompanies a price decline. This development often comes before upward movements. Additionally, the RSI has almost surpassed 50, which is a sign of an upward trend. According to experts, if the FLM price breaks out, it could increase by 250% and reach the next resistance at $0.290. However, if it fails to do so, a 50% decrease to the descending support line at $0.040 could be the most likely future FLM price prediction. The daily timeframe technical analysis shows that the FLM price increased by 200% between September 4th and 5th.
FLM trading volume reached its highest levels since June 2022 following the uptrend. Additionally, the FLM social dominance metric reached its highest level in 5 weeks. However, the rate of increase could not be sustained. The token’s price created a long upper wick and then fell below the $0.120 horizontal resistance area. However, FLM is still trading above the ascending support line that has been in place since June. More recently, the price confirmed this line on August 17th and bounced back after reaching an all-time low of $0.044. It then created a higher low on September 1st before accelerating its upward momentum.
Therefore, the most likely FLM price prediction could be a breakout from the descending resistance line and the $0.120 area. This possible scenario could trigger a rise to the next resistance at $0.290. However, a break from the ascending support line could invalidate this bullish prediction and cause a drop to the next nearest support at $0.040.