Flare [FLR] rallied 8.8% in a day on Thursday, the 14th of May. The following day, the FAssets v1.3 mainnet upgrade went live.
This upgrade allows Ripple [XRP] users to mint FXRP tokens more easily, via a single XRP Ledger transaction.
This was bullish for the Flare network because it makes the XRP liquidity easier to onboard onto the FXRP ecosystem and boosts adoption potential.
Yet, FLR saw a sell-the-news type price action recently. It has receded 8.3% after reaching a local high of $0.01 on Friday.
The weekly Flare chart signaled a downtrend in progress. However, there were some encouraging signs. The $0.0086 level, which had been a key horizontal level in 2026, was flipped to support once again.
At the same time, the MACD formed a bullish crossover but was still well below the zero line. This indicated a temporary momentum shift, but warned that the prevailing trend for this timeframe was bearish.
The OBV also halted its downward slide in recent months, but had yet to make a new high.
Is the $0.0086 flip enough to kickstart a relief rally?
The 4-hour chart showed a strong uptrend in progress. The technical indicators reinforced the idea of buyer strength, although there was potential for a pullback in the near term based on the MACD’s movement.
The $0.0086 level was a short-term demand zone that could be tested in case of a pullback.
A prolonged sell-off over the coming week could see FLR fall to the $0.0080 support level.
Traders should remember that the longer-term trend was bearish. The current rally, if it can get going, would represent a higher timeframe relief rally.
Bitcoin [BTC] fell below the psychological $80k number. Fears of a broader U.S. market crash prompted could heighten volatility in the altcoin market in the coming days.
Final Summary
- The FAssets v1.3 mainnet upgrade became a sell-the-news event at the nearby round-number resistance.
- Bitcoin’s next price moves will influence FLR’s market sentiment. The altcoin is expected to continue its short-term correction.
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