Flare Network (FLR)

Flare network is a new public chain with a single, simple, coherent stack on which developers can create secure, fully decentralized cross-chain applications. Flare Network wants to address the interoperability of blockchains so that assets and information can flow securely and freely between blockchains.

1. Basic Info

2. Technical

2.1 Kline Price Chart

2.2 Technical Analysis

The asset is currently in a downtrend, following a period of significant volatility and price decline starting around mid-December 2024. The recent daily price action shows a continued weakness, with lower highs and lower lows evident in the past few trading days. The most recent day, January 5, 2025, saw a marginal price decrease on a modest volume, suggesting that the selling pressure is still present, albeit not as intense as in previous periods.

Looking further back, the period from December 18th to December 20th shows high volatility with large price swings and substantial volume. This period appeared to be pivotal, marking the start of the decline. The prior period showed signs of strength with multiple upward trending days. The price failed to sustain the higher levels and experienced a sharp reversal. This shift coincided with a marked increase in trading volume, indicating strong selling interest which accelerated the downward pressure.

Prior to December 18th there was an area of consolidation. This consolidation period was characterized by fluctuating prices but a lack of clear direction. Before this consolidation, there were some sharp rises in price. These rises were on relatively high volumes, signaling initial bullish momentum. The asset, however, couldn’t maintain these levels and has since experienced a price correction. The high volatility and subsequent decline suggest a lack of strong support levels in the current price range. It s indicative of a market that s either in a correction phase or transitioning to a new trading range.

The lack of a significant bullish reversal pattern and the persistence of lower highs, combined with declining volumes, paints a picture of a market struggling to find a bottom. The lower volume seen in the last few days could be interpreted as a sign that sellers are losing a bit of steam, however, it does not signal any bullish trend reversal. Based on this, I predict that the immediate short-term trend remains bearish.

There is the possibility of a small rally or consolidation phase, however, if any bullish attempt occurs it’s more likely to be a temporary bounce within the downtrend rather than a sustained recovery. The price is likely to retest previous lows before any significant bullish action can be considered. Traders should remain cautious and avoid attempting to catch a falling knife, and look for stronger signals of reversal before taking long positions.
The current analysis suggests that the asset has a high probability of continuing its decline or remaining in a period of consolidation, without a very significant immediate upward push. Any significant price movement to the upside requires strong volume and price action to confirm any trend change. Until then, the risk is clearly towards the downside.