Deep Dive
1. AI Hero Shutdown (Bearish Impact)
Overview: Four announced on Dec 30, 2025, that its AI Hero product would cease operations by Jan 8, 2026, removing a key utility layer. Users were advised to withdraw assets, creating immediate sell pressure.
What this means:
The closure eliminates a revenue stream (transaction fees) and reduces the ecosystem's functional use cases. Historical patterns show token prices often decline when live products sunset without replacement roadmaps. With 55% price drop since August 2025 peak, this event reinforces bearish sentiment.
What to look out for:
Clarity on how Four will reallocate resources – silence since the shutdown risks further devaluation.
2. Technical Breakdown (Bearish Impact)
Overview: FORM broke below its 7-day SMA ($0.381) and 30-day SMA ($0.361), triggering algorithmic sell orders. The MACD histogram turned negative (-0.000298), signaling bearish momentum.
What this means:
Traders watch these levels for trend confirmation. The breakdown suggests short-term holders are exiting – 24h volume fell 39% to $6.5M, indicating weak buying interest to counter declines. Next support sits at the 50% Fibonacci level ($0.3799).
3. Liquidity Crunch (Mixed Impact)
Overview: FORM’s turnover ratio (volume/market cap) is just 4.58%, reflecting shallow markets. The top 5 wallets hold 87.96% of supply (Gate.com).
What this means:
Low liquidity magnifies price swings – even modest sells create disproportionate dips. While concentrated ownership could enable coordinated buybacks, no such activity has been observed recently.
Conclusion
FORM’s decline stems from fundamental erosion (AI Hero closure), technical breakdowns, and structural liquidity risks. Until the team addresses the product gap and improves market depth, volatility may persist.
Key watch: Can FORM hold above its 30-day SMA ($0.3609), or will it retest November 2025 lows near $0.31?