FLR formed a god candle today, breaking out of its multi-month downtrend amid investor hype around an upcoming upgrade to the network.
Flare (FLR) rallied 51.8% to an intraday high of $0.0167 while bringing its market cap to over $927 million as of press time. Its rally came along with increased trading activity, with its daily trading volume increasing by 622% to over $52.5 million, while open interest in its futures market stood 50% higher at $3.11 million.
FLR rallied after Flare network developers teased an upcoming upgrade dubbed Flare 2.0.
According to an official post explaining the update, the goal is to expand Flare’s consensus layer across multiple chains, not just by bridging assets but by enabling actual protocol-level control on other chains through a new system called Protocol Managed Wallets.
Per the announcement, immediate-use cases being built on the new architecture include Assets V2, which lets users bring tokens like XRP, BTC, and DOGE into DeFi with no bridge risk, and XRP Staking, which allows XRP holders to earn yield by contributing to Flare-based services.
An official rollout date for the upgrade is yet to be announced, but the community appears to be pricing in the potential impact early.
Buoyed by heightened trader interest, FLR also began trending on Google, reflecting growing retail attention. According to data from Santiment, the token’s weighted social sentiment has flipped to positive, which is typically a sign that the community is turning more optimistic about FLR’s near-term outlook.
FLR’s rally was further supported by improved risk sentiment in broader markets, following news that the U.S. had paused aggressive tariff policies for a 3-month period while lowering the reciprocal tariffs to 10%.
The crypto market cap recovered 5% to over $2.68 trillion earlier today. Major altcoins like Ethereum (ETH), XRP (XRP), Solana (SOL) and Dogecoin (DOGE) recorded gains ranging between 7-10%.
Flare price analysis
Technical indicators portray a positive outlook for FLR in the short term.
On the daily timeframe, FLR recently tested the upper boundary of a falling parallel channel pattern that had been keeping the altcoin in a downtrend since early December last year.
In technical analysis, a strong break from the upper side of such a pattern usually leads to more sustained gains in the following days.
The MACD line has crossed above the signal line, another sign of a reversal in trend. Meanwhile, the Relative Strength Index has moved above the neutral point to 52, which means that buying pressure is starting to outweigh selling, adding further confirmation to a potential FLR breakout.
The next likely target for FLR is $0.0314, its yearly high, a break above which could help bulls challenge the $0.035 psychological resistance level, which it failed to break in December last year.
However, a break below the lower side of the mentioned pattern could invalidate the current bullish setup, potentially triggering a correction toward the $0.012–$0.011 support zone.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
