Flare (FLR) is stirring excitement among traders as it appears poised for a significant rebound despite a steep decline in its value. After experiencing a dramatic 65% drop from its 52-week high, Flare is showing signs of a potential recovery, with predictions suggesting a 90% upside could be on the horizon.

Current Price Trends and Technical Analysis

Over the past year, Flare’s value has dropped substantially from a peak of $0.052 to its current floor of $0.018. This decline, a stark 62% drop, followed the failure to maintain the psychological resistance level of $0.050. The token’s downward trajectory has been marked by a consistent bearish trend, breaking through key exponential moving averages (EMAs) and support levels.

However, recent developments suggest that Flare might be on the brink of a significant turnaround. The token has formed a falling wedge pattern, which is often considered a bullish reversal signal. This technical formation, coupled with the recent price action, indicates that Flare might be preparing for a substantial rally.

Double Bottom Reversal and Potential Breakout

The falling wedge pattern Flare is currently navigating suggests that the token could be on the verge of a breakout. This pattern is characterized by a narrowing price range and declining volatility, which typically precedes a sharp price movement. The recent test of the $0.018 support level, where the token experienced a minor 9% drop, could be setting the stage for a double bottom reversal.

This potential reversal is supported by a lower price rejection observed on the daily chart, where the token’s recent price action has shown signs of stabilizing at the $0.018 level. The daily Relative Strength Index (RSI) is also exhibiting a positive divergence, approaching the oversold boundary, which reinforces the bullish outlook.

Challenges and Overhead Supply Pressure

Despite the promising signs, Flare faces significant challenges. The daily EMAs are aligned bearishly, and the token has encountered strong overhead supply pressure, particularly from the 20-day EMA. This pressure could hinder a swift recovery, making the upcoming intraday price action crucial for determining the token’s trajectory.

To overcome these hurdles, Flare needs to maintain its position above the $0.018 support level and exhibit a sustained bullish reversal. If it manages to do so, the token could break out of the falling wedge pattern and head towards higher resistance levels.

Future Targets and Fibonacci Levels

According to Fibonacci retracement levels, a successful breakout could see Flare targeting the 38.20% or 50% Fib levels. This would imply a potential price increase to approximately $0.0311 or $0.03510. Achieving these targets would represent a notable recovery and a significant upside from its current price.

Conclusion

Flare’s current situation is reminiscent of a phoenix rising from the ashes. Despite the severe drop in its value over the past year, technical indicators suggest that a significant rebound could be on the horizon. The formation of a falling wedge pattern and the potential for a double bottom reversal provide a hopeful outlook for the token.

As Flare attempts to break free from its bearish trend, traders and investors will be closely watching its price movements and technical indicators. If Flare can successfully navigate the challenges of overhead supply pressure and maintain its position at critical support levels, it could be on track for a substantial recovery, with potential gains of up to 90% in the near future.