Flow is falling today: what traders are watching (January 2)

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Flow Slides 11.05% Today to $0.08

Highlights

The Flow blockchain suffered a $3.9 million security breach, leading the Flow Foundation to implement a two-stage recovery plan avoiding a network rollback.
Restoration efforts prioritize bringing the EVM layer back online and cleaning targeted transactions, with a goal to fully restore 99.9% of accounts within 24 hours.
Network downtime affected some NFT loan borrowers, underscoring both the ecosystem's governance response and ongoing operational challenges.

Network recovery accelerates after security breach stresses governance

The Flow blockchain experienced a $3.9 million security breach, prompting the Flow Foundation to launch a two-stage recovery plan that avoids a network rollback in favor of burning affected tokens to preserve decentralization. Restoration efforts are focused on bringing the EVM layer back online and cleaning up targeted transactions, aiming to restore 99.9% of accounts with full access within 24 hours. Some NFT loan borrowers were impacted by network downtime, highlighting both the ecosystem's governance response and ongoing operational challenges.

Anton Kharitonov, expert at Traders Union, sees persistent weakness in FLOW as the price remains well below key moving averages. He believes the $3.9 million security incident has undermined both sentiment and confidence in protocol governance, while technicals show heavily oversold conditions and no sign of a bullish reversal. Intraday volatility and failure to find dynamic support suggest risk of further selloffs. Immediate support sits at $0.0659, but a breakdown could push FLOW to fresh lows. "Until FLOW shows signs of bottoming or recaptures $0.0780, I remain defensive and expect continued downward pressure," says Kharitonov.

Viktoras Karapetjanc, expert at Traders Union, views the Flow Foundation’s quick response to the breach as a sign of resilience and proactive governance. He believes near-term volatility is an opportunity, especially as the fundamental value of the ecosystem remains intact and restoration is on track. Karapetjanc highlights that regaining the EVM layer and full access for 99.9% of accounts will help restore trust. He sees future upgrades and security improvements as drivers for renewed demand. "The network’s decisive recovery efforts and market structure offer bullish setups for patient investors," asserts Karapetjanc.

Jainam Mehta, market strategist, notes FLOW is stuck in a wide and volatile range, with oscillators deeply oversold. He believes tactical traders could watch for bottoming signals near $0.0659, but downside risk prevails unless $0.0780 is recaptured. Mehta argues that lack of bullish divergence warns against early longs, but option sellers may find opportunity in the current volatility band. "If buyers fail to reclaim $0.0780, the path of least resistance remains lower," says Mehta.

Sustained oversold readings as sellers drive momentum through support

Momentum indicators confirm strong selling bias, with both MACD and ADX firmly negative. RSI (11.19), Stoch RSI, and CCI all show oversold conditions, underscoring substantial downside stretch. Sellers have dominated intraday trading as FLOW opened $0.01 below the previous close, trading close to session lows in a wide, volatile range, and all daily oscillators point to sustained downward momentum with no bullish divergence visible. The nearest dynamic resistance is the Ichimoku Kijun level at $0.1501, while there is no strong dynamic support above current levels.

Last time, analysts noted that Flow was under pronounced bearish momentum, with prices remaining well beneath major moving averages across all key timeframes and no significant support from either moving averages or Ichimoku indicators. Momentum signals including RSI, MACD, and others emphasized persistent sell-side pressure throughout the session, while a lack of near-term rebound catalysts indicated continued downside risk within a confined volatility range.

Source of Data: FLOW Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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