Deep Dive
Overview:
Flow’s recovery plan to destroy 150 million counterfeit tokens (minted in a Dec 27, 2025, $3.9M exploit) advanced, with a scheduled burn on January 30. Exchanges like Huobi HTX froze illicit assets, while the network avoided a full rollback.
What this means:
The containment of counterfeit supply (98.7% isolated) eased inflation fears. However, criticism of unilateral asset seizures by Flow’s team (e.g., Huobi HTX disputes) highlights governance risks.
Key watch:
Post-burn supply metrics and exchange relisting decisions (e.g., Upbit’s “caution” status).
2. Technical Oversold Bounce (Bullish Short-Term)
Overview:
FLOW’s RSI14 hit 34.59 (near oversold territory) on Jan 16, coinciding with a bounce from the 200-day EMA resistance at $0.2997.
What this means:
Traders interpreted the RSI dip and Fibonacci retracement level at $0.099 (78.6%) as a buying signal, though MACD remains negative (-0.018).
Key watch:
A close above the 7-day SMA ($0.0968) could signal further momentum.
3. Regulatory Risk Stabilization (Neutral)
Overview:
South Korean exchanges (Upbit, Bithumb, Coinone) extended FLOW’s “investment warning” status on Jan 14 but stopped short of delisting, pending DAXA review.
What this means:
The decision reduced immediate delisting fears but kept trading restrictions (e.g., disclosures, volume caps) in place. FLOW’s 24h KRW volume fell 24% post-announcement.
Conclusion
FLOW’s 24h rise reflects cautious optimism around supply controls and technical factors, though structural risks (governance disputes, NFT market slump) persist. Key watch: Can FLOW hold $0.096 support ahead of the Jan 30 token burn?