Flow (FLOW) logged its best daily performance on Aug.4 after becoming the latest blockchain to support Instagram’s nonfungible token (NFT) features.
Insta-made FLOW rally
Meta CEO Mark Zuckerberg announced on Aug. 4 that Instagram had expanded its NFT support to 100 more countries in Africa, the Asia-Pacific, the Middle East and the Americas. As a result, more users can post digital collectibles minted on the Flow blockchain on Instagram.
The high-profile integration helped FLOW surge 54% to reach an intraday high of $2.83 a token. Interestingly, the token’s massive upside move accompanied a spike in its daily trading volumes, confirming some weight behind the bullish trend.
FLOW/USD daily price chart. Source: TradingView
Like any blockchain native asset, the ups and downs in FLOW’s demand are tied to the adoption of its parent chain. In general, FLOW serves as a legal tender within the Flow’s 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 protocol governance and ecosystem development
That explains the token’s bullish response to Instagram’s adoption.
Another 30% gains ahead?
From a technical perspective, FLOW eyes another 30% rally from its current price levels.
FLOW’s recent price trends appear to have painted a bullish pattern called the “Bump-and-Run-Reversal (BARR) bottom” on its daily chart. Now, the token has entered a breakout stage with its upside target near the level where the BARR bottom’s formation began at around $3.20.
FLOW/USD daily price chart featuring BARR setup. Source: TradingView
According to veteran analyst Tom Bulkowski, BARR patterns are “surprisingly good performers,” with a 76% chance of meeting its profit target. That raises FLOW’s potential to rise another 30% to $3.20, further supported by strong fundamentals.
On the flip side, FLOW’s latest bull run has pushed its daily relative strength index (RSI) above 70, or overbought territory, which suggests heightened sell-off risks.
Source: Cointelegraph
