- RSI is now at 67.13, approaching overbought territory.
- Awesome Oscillator has turned positive for the first time since January.
- FLR has broken resistance at $0.016.
Flare (FLR) has emerged as one of the strongest performers in the altcoin market this week, surging 57% over the past seven days to reach a new local high of $0.018 and trading around $0.017 at the time of writing.
Source: CoinMarketCap
The rally marks a steady upward move that began on April 9, with FLR recording new daily highs each day since that date.
Key technical indicators such as the Relative Strength Index (RSI) and the Awesome Oscillator (AO) now suggest that strong buying activity continues to outweigh selling pressure.
However, with RSI nearing overbought levels, analysts warn that a pullback could occur if profit-taking accelerates.
RSI at 67 signals strong buying momentum
Flare’s Relative Strength Index sits at 67.13 at the time of writing, closing in on the key 70 level commonly associated with overbought conditions.
The RSI tracks momentum by comparing the magnitude of recent gains and losses over a specified period on a scale from 0 to 100. Readings above 70 often suggest an asset may be overbought and due for a correction, while readings below 30 indicate the opposite.
The rising RSI indicates buyers are currently in control of the market, reflecting sustained interest in the asset. Although it has not yet crossed the 70 threshold, the current reading suggests FLR is approaching a potential inflection point.
If the current momentum continues, the RSI could confirm an overbought signal soon, increasing the likelihood of a short-term price pullback.
AO turns positive for first time in two months
Adding to bullish sentiment, Flare’s Awesome Oscillator has turned positive for the first time since January 26.
The AO consists of a histogram that measures the difference between the 5-period and 34-period simple moving averages, offering insight into trend direction and potential reversals.
Recent bars have crossed above the zero line and continued to rise, signalling an increase in positive market momentum.
When AO bars move above zero, it typically indicates trend strengthening. In FLR’s case, consistent growth in these bars suggests rising bullish conviction across the market.
These technical developments support the view that FLR’s recent gains are not merely a short-lived spike but part of a broader uptrend driven by improved investor sentiment.
Price breaks $0.016 resistance, eyes $0.021
FLR’s recent rally saw it break through resistance at $0.016, a price level that previously capped upward movement. Holding above this level is viewed as critical for determining whether the rally can continue.
If $0.016 holds as new support, analysts suggest the altcoin could push higher to test the next major resistance around $0.021. However, near-term profit-taking could challenge this upside projection.
Renewed selling pressure could push FLR back below $0.016 toward $0.010, especially if RSI moves into overbought territory and market participants seek to lock in gains.
Technical signals support near-term gains
Overall, technical indicators for FLR remain constructive. The combination of a rising RSI, a positive AO crossover and a breakout above previous resistance points to continued bullish momentum in the near term.
Traders are advised to monitor the RSI closely. A move above 70 could signal the need for a correction, particularly if volume begins to fall or candlestick patterns show hesitation among buyers.
At this stage, FLR’s ability to consolidate above $0.016 is likely to determine the next phase of its price action.