Flow (FLOW) registered its best daily performance on August 4 after becoming the latest blockchain to support Instagram’s non-fungible token (NFT) features.
Insta-made FLOW rally
Meta CEO Mark Zuckerberg announced on August 4 that Instagram has expanded its NFT support to an additional 100 countries in Africa, Asia-Pacific, the Middle East and the Americas. As a result, more users can post digital collectibles slammed on the Flow blockchain on Instagram.
The high-profile integration helped FLOW rise 54% to hit an intraday high of $2.83 per token. Interestingly, the token’s massive upward movement was accompanied by a spike in daily trading volumes, confirming some weight behind the bullish trend.
Like any blockchain native asset, the ups and downs in FLOW’s demand are linked to its parent chain adoption. In general, FLOW serves as legal tender within Flow’s proof-of-stake ecosystem for the following purposes:
- turn of
- Deploy Rewards
- Transaction costs
- Account Storage Deposits
- Collateral for a stablecoin and DeFi products
- Participation in protocol management and ecosystem development
That explains the bullish reaction of the token to its adoption of Instagram.
Another 30% profit ahead?
From a technical point of view, FLOW sees another 30% increase from the current price level.
FLOW’s recent price trends appear to have drawn a bullish pattern called the “Bump-and-Run-Reversal (BARR) Bottom” on the daily chart. Now the token has entered a breakout phase with its upward target near the level where the BARR bottom formation started at around $3.20.
According to veteran analyst Tom Bulkowski, BARR patterns are “surprisingly high performers,” with a 76% chance of hitting the profit target. That raises FLOW’s potential to rise another 30% to USD 3.20, further supported by strong fundamentals.
Related: ‘Metaverse is a change that has been happening for 20 years’: Q&A with TSWT 30 under 30 entrepreneurs and investor in 300+ crypto startups
On the other hand, FLOW’s latest bull run has pushed its daily relative strength index (RSI) above 70, or overbought territory, indicating heightened sell-off risks.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TSWT.com. Every investment and trading move carries risks, you should do your own research when making a decision.