The cryptocurrency market has started December with continued bullish momentum, as altcoins experience upward rallies. This trend coincides with a decline in Bitcoin dominance, which has decreased from a recent high of 61.53% to 57.37%. Among the altcoins, Flow ($FLOW ) and Flare ($FLR) are gaining attention for their impressive weekly performance and the strong potential for significant breakouts.
Flow (FLOW):
FLOW has been consolidating within a descending triangle pattern for over two years, establishing strong support levels at lower prices while repeatedly testing resistance. Currently priced at $0.9710, FLOW is nearing a crucial point as it approaches its descending resistance line. A breakout above $1.02, with confirmation, would indicate the end of this prolonged downtrend, potentially initiating a sharp rally.
Key resistance levels to watch include $1.71 and $2.05, which could offer an upside of over 113%. The ultimate resistance at $3.27 represents a significant recovery from FLOW's historical lows. The Relative Strength Index (RSI) is showing bullish momentum, inching closer to overbought territory, signaling growing buying interest. If the breakout occurs, FLOW could emerge as one of the top performers in the upcoming months.
Flare (FLR):
Flare (FLR) is exhibiting a descending wedge pattern, a bullish reversal structure that suggests accumulation at lower price levels. Currently trading at $0.02782, FLR is approaching a breakout point from this wedge. A breakout above the trendline would signal the start of a potential rally, with the first major resistance at $0.060, representing a 101% gain.
Historically, similar wedge breakouts on FLR have led to parabolic moves, with one such breakout earlier this year resulting in a 141.5% gain. However, caution is advised, as the RSI has already entered the overbought region at 79.65, indicating that minor pullbacks may occur before the breakout is fully confirmed. Despite this, the overall bullish structure suggests FLR could see significant upside in the medium term.
Conclusion:
Both FLOW and FLR are displaying strong bullish setups, supported by technical indicators and historical price action. If these breakouts materialize, they could yield substantial gains for investors. However, caution is advised, as breakouts require confirmation, and broader market conditions will play a critical role in sustaining these rallies. Investors should monitor these key levels for confirmation before making any strategic moves.
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