Flow is rolling out blockchain tools as its social dominance improves
Anyone who wants their protocol to be widely used in DeFi and dApps will need robust development tools. And that’s exactly what L1 blockchain Flow achieved not long ago, as reported on the company’s official Twitter page.
In a blog post from October 18, the DZone developer community provided a comprehensive explanation of the tools.
Their recent show of strength may be directly related 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 toolsLearn more 👉 pic.twitter.com/GPVXLq11nv
— Flow (@flow_blockchain) 19 October 2022
This calculation may have some problems
Data collected recently indicates that there has been an increase in the number of blocks developed for Flow on the chain. Seeing people using the resources available to them and creating dApps on top of Flow is a promising indication.
Investors and traders can take this as a positive sign.
However, at the time of writing, the value of their original token has fallen by a stunning 17.49% over a period of 16 days.
Weekly, fortnightly and monthly depreciation is also recorded by Coingecko.
Back in October 17 and 18, FLOW tried to rally but was rejected at $1,580. However, the CMF for FLOW indicates that buyers are in command.
Given the recent advances on the chain by Flow, investors and traders may be in for a longer route.
Will the flow continue downstream or rise?
Although Chaikin’s money flow indicator favors bulls, negative RSI and momentum readings negate this advantage.
We expect FLOW to drop below the 78.60 percent Fibonacci retracement level, which currently sits at $1.345, given that the token is already under intense selling pressure.
Previous price action was consistent with a bearish flag and bar formation, which will prevent any gains in the short term. Currently, the token is testing the lower half of the trading range, which currently sits at $1,406.
With the token’s current 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 said earlier, the recent uptick in development activity is a strong indicator that things will remain stable for investors in the long term.
Eventually, the 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 coming weeks, this could serve as a spark for a rally. Meanwhile, Flow investors can 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.
