- FLOW sinks to record lows after the $3.9M exploit drives sharp losses and intensifies market fear.
- Korean exchange warnings deepen sell pressure as traders brace for rising liquidity risk.
- Extreme RSI oversold levels suggest rebound potential while volatility continues to build.
FLOW extended its slide over the past day, slipping deeper into oversold territory after another sharp move lower. The token fell about 12% in the past day, pushing the price below its prior record low and setting a new all-time low near $0.091. However, that drop did not happen in isolation.
According to market data, losses now stand near 40% over the past week, more than 55% over the last month, and roughly 86% on a year-on-year basis. The timing matters. The decline follows a run of negative headlines around the project, including a $3.9 million exploit and warnings from major South Korean exchanges that FLOW could face delisting reviews.
Why FLOW’s Price Is Under Pressure
The immediate shock came on December 27, when attackers exploited a flaw in Flow’s execution layer. The breach allowed the minting of fraudulent tokens and the removal of about $3.9 million through cross-chain bridges, including Celer and Stargate. Validators paused the network shortly after. Damage control followed, but confidence did not recover.
As a result, the exploit raised fresh concerns around network resilience and governance. On-chain tracking later showed that the attacker routed funds through Thorchain and Chainflip, reducing the odds of recovery. Regardless, even with assurances that user balances were unaffected, market trust weakened.
Since the incident, FLOW is down roughly 42%, reflecting how quickly risk perception shifted. Pressure increased again when Upbit and Bithumb placed FLOW under a 60-day investment warning. The exchanges cited security-related risks. Once the went public, local volumes thinned.
Korea’s Digital Asset Exchange Alliance signaled that further restrictions could follow if remediation falters. Given that Korea accounts for nearly one-fifth of FLOW’s liquidity, the review created another wave of defensive selling. Traders who normally lean on domestic order books pulled back, and the price action showed it.
Price Action Remains Heavy as FLOW Pushes to Extremes
From a chart perspective, the tone remains clearly bearish. Before December 27, FLOW had been trading inside a falling wedge, a structure sometimes linked with stabilization or reversal. Nevertheless, that setup failed.
Price broke below the lower boundary, invalidating the pattern and confirming downside continuation. The move also cleared October’s low near $0.12, opening space for the slide toward the current all-time low around $0.091. Liquidation data reflects the imbalance.
Source: CoinGlass
About $1.92 million was wiped out in the last 24 hours. Long positions accounted for roughly $1.32 million of that total, while shorts absorbed close to $594.20K. This data hinted that forced long exits dominated, adding momentum to the decline. Derivatives positioning has told a similar story.
Source: CoinGlass
The OI-weighted funding rate dropped to an extreme 1.5037% on December 27, suggesting traders were willing to pay to stay short. While still negative, funding has since moderated, hinting that positioning may be less one-sided than it was at the lows.
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Is a Bounce Still on the Table?
Technically, the market is stretched. Daily RSI is hovering near 12, a level that often reflects exhaustion rather than strength. That alone does not reverse a trend, but it does suggest selling pressure may be closer to its limits. A move back above 30 would be an early sign that conditions are stabilizing.
Source: TradingView
FLOW is also sitting near the 0/8 Murrey Math “Ultimate Support,” aligned with the current all-time low. For now, that area is acting as the nearest floor. At the same time, open interest has climbed to a three-week high above $38 million, pointing to rising participation and the potential for sharp price swings.
Source: CoinGlass
With the OI-weighted funding rate improving toward the green zone, now at -0.0691%, early signs of renewed buying interest are starting to surface. Such scenarios hint that a recovery could target $0.12, which aligns with the October low and the 1/8 Murrey level.
Above that, $0.14 and $0.17 come into view, the latter overlapping with the $0.16–$0.18 resistance band and the 23.6% Fibonacci retracement. A clean break there would put $0.23 (38.20% Fib) and $0.27 (50% Fib) back on the map.
On the other hand, if support fails, price discovery could extend into untested territory, with $0.07 and $0.04 emerging as potential reference points. For now, FLOW sits at an uneasy intersection.
The market is deeply oversold, volatility is rising, and sentiment remains fragile. Whether that leads to relief or another leg lower will likely depend on how quickly confidence, not just price, begins to recover.
