Key Takeaways
FLOCK token has rallied by triple digits over the past few days. However, it flashed an overbought signal that triggered pullbacks in April and June. Is it time for a slight cool-off?
Flock [FLOCK] AI token pumped by over 140% in the last seven days, thanks to renewed market interest in decentralized AI and the crypto treasury trend.
In fact, as the overall market nursed Monday blues and as Bitcoin [BTC] retreated lower, the altcoin shot higher by 49%. Hence, the question – What’s really driving the rally?
FLOCK’s positive fundamentals
Flock AI is winning on one differentiated front – Future and privacy-first AI programs will need user-owned training, rather than centralized AI models.
Interestingly, its decentralized AI training model is being billed as “not your models, not your AI,” drawing parallels to self-custodial wallets and “not your keys, not your coins.”
Additionally, Flock has scored several blue-chip partnerships, including Alibaba Cloud. In fact, Monday’s 49% upswing followed a collaboration with the Hong Kong AI agency, HKGAI.
Crypto treasury firms have begun showing interest in the project too. The latest potential partnership with CIMG seeks to train the firm’s AI wellness system on Flock and adopt the native token FLOCK as a reserve treasury.
According to Flock, this appeared to be a shift from most traditional crypto firms that chase speculation.
“This reflects a shift toward utility-first digital asset treasuries, where tokens are acquired not for speculative purposes but to support onchain products and services that generate long-term value for shareholders.”
Simply put, the project had great fundamentals and market interest that drove its recent rally.
Can the rally extend itself?
On the technical side of things, it seemed that FLOCK could attempt a small growth stretch before a potential cool-off.
On the daily charts, the RSI hit the overbought zone – A condition that preceded past cool-offs in April and June.
Source: FLOCK/USDT, TradingView
The previous local high at $0.32 could be a key buying level and support with an immediate bullish target at the trendline resistance of $0.50.
From a liquidity point of view, the aforementioned idea was also reinforced. Especially since as per CoinGlass, liquidity pools and price magnets existed at $0.40, $0.45, and near $0.50.
Source: CoinGlass
To put it simply, FLOCK has rallied due to a utility narrative from its decentralized AI training models. With crypto treasuries also showing interest, the demand could push the altcoin higher.
In the near term, however, price charts suggested that the massive rally may be primed for a brief cool-off before extending itself.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
