Instagram rally! FLOW Token Jumps 50% Amid Instagram Adoption Euphoria

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Flow (FLOW) registered its best daily performance on August 4 after becoming the latest blockchain to support Instagram’s non-fungible token (NFT) features.

Insta-made FLOW rally

Meta CEO Mark Zuckerberg announced on August 4 that Instagram has expanded its NFT support to an additional 100 countries in Africa, Asia-Pacific, the Middle East and the Americas. As a result, more users can post digital collectibles slammed on the Flow blockchain on Instagram.

The high-profile integration helped FLOW rise 54% to hit an intraday high of $2.83 per token. Interestingly, the token’s massive upward movement was accompanied by a spike in daily trading volumes, confirming some weight behind the bullish trend.

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FLOW/USD daily price chart. Source: TradingView

Like any blockchain native asset, the ups and downs in FLOW’s demand are linked to its parent chain adoption. In general, FLOW serves as legal tender within Flow’s proof-of-stake ecosystem for the following purposes:

  • turn of
  • Deploy Rewards
  • Transaction costs
  • Account Storage Deposits
  • Collateral for a stablecoin and DeFi products
  • Participation in protocol management and ecosystem development

That explains the bullish reaction of the token to its adoption of Instagram.

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Another 30% profit ahead?

From a technical point of view, FLOW sees another 30% increase from the current price level.

FLOW’s recent price trends appear to have drawn a bullish pattern called the “Bump-and-Run-Reversal (BARR) Bottom” on the daily chart. Now the token has entered a breakout phase with its upward target near the level where the BARR bottom formation started at around $3.20.

FLOW/USD daily price chart with BARR settings. Source: TradingView

According to veteran analyst Tom Bulkowski, BARR patterns are “surprisingly high performers,” with a 76% chance of hitting the profit target. That raises FLOW’s potential to rise another 30% to USD 3.20, further supported by strong fundamentals.

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On the other hand, FLOW’s latest bull run has pushed its daily relative strength index (RSI) above 70, or overbought territory, indicating heightened sell-off risks.

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