The story of Flow is one of tragedy and bad fortune. The token is doing quite poorly, with not a single good week since its release on multiple exchanges about a year ago.
Even during a massive market-wide bull run, the token failed to gain any significant momentum. It is now trading under the $1 level making it hard to believe that it has any potential for a reversal.
Technical indicators paint a grim picture
3-week RSI is at the bottom and should indicate a strong swing in the opposite direction, but it won’t happen without a good reason for bulls to start rallying.
Layoffs at Drapper Labs tell us that the company is tightening its belt to get through the crypto “winter” and try to survive, which is not something inducing hope and passion.
Market volumes are also at historic lows, which usually indicates that the market is tired from the existing trend, but it is also an unjustified statement.
MACD did not show any potential for a rally since August. Even then, the bulls moved the price just a tiny bit.
After breaking through the $1.9 resistance level at the end of November, the price has been tanking and reached $0.8484 by the time of writing.
Even if the bulls defend successfully and try to reclaim the $1.15 support level, it won’t be enough to revitalize the community for another rally.
It seems that Flow has to give way to other blockchain networks that have a better chance of succeeding.
If the FLOW token doesn’t reclaim the $1 price, it will be hard to justify the existence of a network that fails to attract any attention from users and investors.
Pressed against the wall
The Flow network is facing strong competition. Cardano, Polygon, Ethereum, Solano, Polkadot, and many other networks are offering similar functionality or utility, meaning that Flow must have something unique and exciting to offer.
Unfortunately, they will have to come up with something during a very tough period for the whole crypto industry, as the worst may still be ahead.