The trend reversal to bullish for the FLOW coin currently (early January 2026) is an interesting phenomenon as it occurs after a period of quite extreme crisis in late December 2025.
Based on the latest market data, here are the main reasons why FLOW is experiencing a trend reversal (rebound) from its lowest point:
1. Success of the Post-Exploit Recovery Phase
On December 27, 2025, Flow experienced an exploit on its execution layer that caused losses of around $3.9 million. The price briefly plummeted more than 40% to an all-time low of around $0.079.
Positive Sentiment: Trend reversal starts when Flow Foundation quickly moves to remediation. Currently, the network has entered Phase 1 of Recovery, where the Cadence environment has returned to normal and blocks are starting to be produced again.
Exchange Cooperation: Binance and other major exchanges help freeze stolen funds (reported over $5 million in assets successfully secured), which restores investor confidence.
2. Extreme "Oversold" Technical Condition
Before this reversal, FLOW's technical indicators showed very oversold conditions.
Low RSI: The RSI (Relative Strength Index) briefly touched numbers from 5.5 to 16, which technically indicates that the price is too cheap and ready for a rebound.
Strong Support: The price finds a new floor (support) at a psychological level after a sharp decline, triggering buying action from speculative traders looking to profit from price rebounds.
3. Fundamental Catalysts: Crescendo & EVM Upgrade
Despite security incidents, the fundamentals of Flow in 2025 are actually quite strong because:
EVM Equivalence: The Crescendo upgrade allows Flow to be compatible with the Ethereum ecosystem. This opens the door for greater DeFi liquidity to enter the Flow network.
NFT & Gaming Ecosystem: Flow remains a leader in the NFT and Web3 gaming sector (such as NBA Top Shot), and developer participation in Q4 2025 shows stable growth.
4. Global Crypto Market Sentiment
The reversal of FLOW is also driven by global market conditions (BTC and ETH) that are in a positive trend towards 2026. Many investors see the decline in FLOW due to exploits as a "forced discount" on an asset that fundamentally still has a future in the consumer application sector.
Current Stage Conclusion
If you ask "which stage is it", technically FLOW is in the Transition Stage (Bottoming Out). The price is trying to turn Resistance into new Support.
