Flare (FLR) has emerged as one of the strongest performers in the altcoin market this week, surging by 57% over the past seven days. The cryptocurrency hit a new local high of $0.018 and is currently trading at $0.017. The impressive rally began on April 9, with FLR recording new daily highs each day, reflecting a solid bullish trend.

Key Technical Indicators Show Strong Buying Momentum

Several technical indicators suggest that FLR is experiencing sustained bullish momentum. The Relative Strength Index (RSI) and the Awesome Oscillator (AO) are both signaling that buying activity continues to outpace selling pressure, which has helped drive the recent surge in FLR’s price.

The RSI is currently at 67.13, approaching the critical 70 mark, which typically signals overbought conditions. The RSI tracks momentum by comparing recent gains and losses, and a reading above 70 often suggests that an asset is overbought and may experience a pullback soon. Although FLR’s RSI is not yet in the overbought zone, it is close to reaching this threshold, signaling that the market may be nearing an inflection point.

While the RSI remains below the 70 level, its upward trajectory indicates that buyers continue to dominate the market, reflecting strong demand for FLR. However, should the RSI cross above 70, the likelihood of a short-term correction increases, as traders may begin taking profits.

Awesome Oscillator Turns Positive

In addition to the RSI, the Awesome Oscillator (AO) has also flipped positive for the first time since January 26. The AO measures the difference between a 5-period and 34-period simple moving average, helping to identify trend changes and market momentum.

The AO bars have moved above the zero line and continue to grow in height, signaling increasing positive momentum. This shift indicates that FLR’s recent gains are part of a broader uptrend, driven by growing investor confidence. The continued growth of the AO bars suggests that the bullish sentiment may not just be a short-term spike, but a more substantial and sustained rally.

Breakthrough Resistance at $0.016

Another key technical development was FLR’s breakthrough of the $0.016 resistance level, which had previously capped its upward movement. The ability of FLR to hold above this level is critical in determining whether the rally can extend further.

If $0.016 holds as a new support level, FLR could push toward its next resistance at $0.021. However, with the RSI nearing overbought territory, a short-term correction could be possible, especially if profit-taking intensifies. In the event of a pullback, FLR may retest the $0.016 support, and if it fails to hold, the price could fall back to $0.010.

Monitoring for Potential Pullback

Despite the positive technical signals, traders should remain cautious and monitor FLR closely, particularly the RSI. If the RSI crosses above 70, it would indicate that the market is becoming overbought, and a correction may follow. Additionally, a drop in volume or candlestick patterns suggesting hesitation among buyers could further signal that a pullback is imminent.

Conclusion

In conclusion, Flare (FLR) is showing strong bullish momentum, supported by positive technical indicators such as the rising RSI and the positive crossover of the Awesome Oscillator. The cryptocurrency has successfully broken through key resistance at $0.016 and is now eyeing the next major resistance at $0.021. However, with the RSI approaching overbought territory, traders should be prepared for potential profit-taking and short-term corrections. If FLR can consolidate above the $0.016 level, it could continue its upward trajectory, but caution is advised as the market nears an inflection point.