Anyone who want their protocol to be widely used in the realms of DeFi and dApps will need robust development tools. And that’s exactly what L1 blockchain Flow accomplished not long ago, as reported on their company’s official Twitter page.
In a blog post from October 18, developer community DZone provided a comprehensive explanation of the tools.
Their recent show of strength can be directly linked to this change.
? @DZoneInc share the essential tools for building on Flow and our smart contract language, Cadence!
? CLIs, IDE extensions, client libraries, local networks and more
? How Flow tools compare to Ethereum tools
— Flow (@flow_blockchain) October 19, 2022
This Metric May Have Some Issues
Data collected recently indicates that there has been an upswing in the number of blocks developed for Flow on the chain. To see people making use of the resources made available to them and creating dApps on top of Flow is a promising indication.
Investors and traders may take this as a positive sign.
As of this writing, however, the value of their native token has plummeted by a stunning 17.49% over a period of 16 days.
Weekly, biweekly, and monthly reductions in value have also been recorded by Coingecko.
Back in October 17 and 18, FLOW tried to rally but was rejected at $1.580. The CMF for FLOW, however, indicates that buyers are in command.
Given the latest on-chain advancements of Flow, investors and traders may be in for a longer route.
Will Flow Continue Downstream Or Ascend?
Although Chaikin’s money flow indicator favors bulls, negative RSI and momentum readings nullify this advantage.
We anticipate FLOW to decline below the 78.60 percent Fibonacci retracement level, now located at $1.345, given that the token is already subject to intense selling pressure.
Previous price action was consistent with a flag and pole bearish formation, which will impede any near-term gains. At present, the token is testing the lower half of its trading range, which currently sits at $1,406.
With the token’s present bearish momentum, we can expect it to reach a descent as low as the 100 Fibonacci retracement level ($1.222).
However, similar to what was stated previously, the recent upswing in development activity is a strong indicator that things will remain stable for investors over the long term.
Eventually, demand for FLOW will increase as the network’s blockchain grows and as developers add more and more tools for greater connectivity between the blockchain and decentralized applications (dApps).
In the upcoming weeks, this may serve as a spark for a rally. Meanwhile, Flow investors may also buy the dip to generate a short-term price increase.
FLOW total market cap at $1.45 billion on the daily chart | Featured image from The Market Periodical, Chart: TradingView.com Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.