Key Highlights:
- $FLOW Token climbed over 50% in 24 hours as trading volume surged nearly 600%, signaling strong market activity.
- The rally followed legal action by Flow Foundation seeking to halt delisting by South Korean exchanges.
- Exchanges including Upbit and Bithumb had planned to end FLOW trading after a prior security exploit on the network.
The native crypto of the Flow Blockchain, $FLOW, saw a sharp rally this week, after climbing more than 50% within 24 hours. Market data shows the asset rising to around $0.06284 during the latest trading session.
The sudden surge has also elevated $FLOW among the stronger performers in the global altcoin market.
$FLOW Jumps Amid Rising Trading Volume
One of the most noticeable signals during the rally was a dramatic surge in trading activity. Market trackers reported a roughly 598% increase in daily trading volume.
Analysts tracking the move believe the rally could be linked to a broader rotation in the altcoin sector. Capital often shifts from large crypto toward smaller cryptos during certain market cycles. In the most recent rotation, FLOW was one of the cryptos with momentum chasing traders. Some other observers also cited activity in other smaller blockchains. Analysts also recognized other crypto projects as aspects of the recently emerging wave of interest in mid-tier cryptos. In such areas, the movement of price can pick up very fast. As traders seek short-term gains, they often shift their capital into cryptos exhibiting strong upward momentum, which can have the additional benefit of magnifying the price swings in both directions.
On a technical front, a number of significant price levels are being studied by analysts. If $FLOW holds support above about $0.048, crypto market participants believe the crypto could attempt another move in the short term to try to push up to around $0.065. Recent trading trends also suggest that the next area of resistance is typically regarded as that zone. However, technical measures also suggest caution. Notably, a drop below the seven day simple moving average near $0.0404 could signal fading momentum. The downside would be for the token to see a more steep decline as traders lock in gains.
Legal Controversy Over Delisting
The market reaction also comes as Flow’s developers and supporting organizations continue to address the aftermath of a security incident that occurred late last year.
On Dec. 27, the Flow network experienced a protocol level exploit that allowed an attacker to mint approximately $3.9 million worth of duplicated tokens. The event forced network operators to take emergency action.
Validators immediately stopped the blockchain to limit the attack. They also worked with exchange partners to freeze and recover cryptos associated with the exploit. According to post-incident reports released later, the attack did not affect user balances directly. Nevertheless, the attack created operational problems for the ecosystem. Several exchanges decided to suspend trading and services related to the crypto while reviews were conducted.
Among the platforms involved were Upbit, Bithumb, and Coinone. These exchanges had earlier announced plans to stop trading support for FLOW following the security breach.
In response, the Flow Foundation and Dapper Labs filed a legal motion in South Korea. The filing requests a temporary suspension of the exchanges’ delisting decision.
According to the foundation, the request was submitted to the Seoul Central District Court. The goal is to pause the termination of trading support until a full review of the incident and the recovery measures can be completed.
In its statement, the foundation said the legal action reflects its responsibility to advocate for the project’s community in South Korea. The group also stated that it remains open to discussions with all parties involved.
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Source: https://www.cryptonewsz.com/flow-volume-spikes-after-legal-move-delisting/
