Deep Dive
1. Technical Breakdown (Bearish Impact)
Overview: AFT’s RSI14 hit 12.8 – its lowest since launch – indicating extreme oversold conditions. The MACD histogram (-0.002) shows accelerating bearish momentum, while the price broke below all key moving averages (7-day SMA at $0.0505 vs. current $0.0283).
What this means: Traders likely triggered stop-loss orders after the price breached the critical $0.038 Fibonacci support level (analysis). The 24h volume spike to $52M (+88.6% WoW) confirms panic selling.
What to watch: A sustained RSI14 below 15 historically precedes short-term bounces in microcaps, but recovery needs to hold above $0.025.
2. Hype Cycle Fade (Mixed Impact)
Overview: AIFlow’s last major partnership announcement (MetaUser_DAO) was July 17, with only routine platform updates since.
What this means: The AI narrative lost momentum sector-wide – the crypto AI sub-sector fell 22% this month (CMC data). Without fresh catalysts, AFT’s 8,758% annual gain appears unsustainable.
3. Tokenomics Pressure (Bearish Impact)
Overview: 100% of AFT’s 1B supply is circulating – uncommon for projects <1 year old. The 1.85 turnover ratio signals extreme volatility.
What this means: Full dilution removes typical “supply lockup” price supports. Combined with a 68% monthly drop, this suggests whales may be exiting positions before potential further declines.
Conclusion
AFT’s plunge reflects technical capitulation amplified by fading AI hype and tokenomics risks. While oversold conditions could spark a dead-cat bounce, sustained recovery likely requires new partnerships or product milestones.
Key watch: Can AFT hold above its all-time low of $0.025, last tested August 16?