Flare’s co-founder shares low-risk XRP staking plans amid FLR airdrop

Flare Network (FLR) is trading at $0.01778 at press time on Thursday, with no significant movement after a 2.26% drop on Wednesday. Parallel to the downfall this week, Flare Network operates an airdrop for WFLR holders while its co-founder, Hugo Philion , discusses the plans and mechanisms of XRP staking for users to earn liquid staked tokens as the next step in expanding Ripple’s XRP role in Decentralized Finance (DeFi). 

Flare Network fuels XRP’s DeFi use case amid FLR airdrops

Hugo Philion highlighted the XRP staking feature as a critical flywheel in the DeFi growth in an interview. The low-risk staking of Ripple’s token will be offered through Firelight, a DeFi platform built with an institutional partner, to secure services called actively validated services.

Similar to other stackable tokens, XRP staking will enable users to earn incentives in the form of Liquid Staked Tokens (LST), which can be used in other DeFi services. 

Alongside the interview, the network announced the FlareDrop.28 were deposited into eligible holders’ accounts. In the airdrop, users with 100 wrapped FLR tokens stand to gain 2.14 FLR tokens. All the FLR token holders are eligible for an airdrop via the wrapping or staking features. 

Flare risks losing crucial support for an extended correction

Flare’s price movement maintains an overall bearish tone, as it has failed to conclude the lower high streak formation since December. FLR takes a bearish reversal from the 200-day Exponential Moving Average (EMA) at $0.019 on Monday, initiating the streak of three consecutive bearish candles accounting for over 7% fall so far this week. 

The Relative Strength Index (RSI) at 44 retraces below the halfway line after a sudden bullish spike last week. As bearish momentum revives, the RSI indicator shows room for extended correction as the oversold conditions are yet to be met. 

The Fibonacci retracement from December’s highest closing price at $0.035 to the year-to-date’s lowest at $0.011, the 23.6% Fibonacci level at $0.016 acts as the immediate support level. 

Investors looking to short the altcoin can find opportunities with a daily closing below $0.016. The next support lies at $0.011, but an early exit trigger could be RSI hitting the oversold zone. 

FLR/USDT daily price chart. Source: Tradingview

Through an optimistic lens, an upside reversal is possible if FLR finds a daily close above $0.020, May’s high, that could accelerate a bullish trend to the 50% retracement level at $0.023.