Griffin AI’s token, GAIN, delivered a rollercoaster ride that traders won’t forget anytime soon. After hackers exploited the BNB Chain to mint 5 billion tokens—worth roughly $110 million—the price collapsed by 78% in a single brutal move. Panic set in fast, but so did bargain hunters.
Within 24 hours, GAIN bounced 17%, fueling speculation that investors saw the dip as a fire-sale opportunity. Still, the big question lingers: is this quick rebound the start of recovery, or just bait before another leg down?
Gain hack aftermath: volatility takes over
The chart looks like chaos personified. The hack triggered a massive liquidity shock, captured in a single candle that sliced the market apart. Since then, GAIN has moved erratically, forming what analysts describe as a potential double-bottom pattern.
But before bulls celebrate, there’s a catch. Double bottoms can sometimes act as stop-hunt traps, luring buyers in before liquidity dries up and prices fall again. In other words, GAIN may not be out of the woods just yet.
Technical signals: rebound or red flag?
Indicators give a mixed picture. The Money Flow Index (MFI) has been climbing, now sitting at 46 and inching closer to the bullish threshold above 50. If it breaks through, it could signal stronger inflows and possibly kickstart a rally.
Meanwhile, the Relative Strength Index (RSI) shows GAIN lingering in oversold territory below 30. That suggests the heavy selling pressure might be easing. Historically, oversold conditions often set the stage for relief rallies—but in hacked tokens, rebounds can fizzle quickly.
Derivative traders still placing bets
Despite bearish spot volumes, derivative traders haven’t checked out. Data shows that while most participants are leaning short, Binance and OKX users are scooping up long positions.
The Open Interest (OI) Weighted Funding Rate adds another layer: though selling still dominates, the rate has started trending upward. That shift points to building momentum, giving bulls some hope that GAIN might stabilize and claw back losses in the near term.
The road ahead for Gain : cautious optimism
GAIN’s situation is precarious. On one hand, oversold conditions, a rising MFI, and bullish bets from derivatives suggest a rebound could be in play. On the other, the aftermath of a $110M hack means volatility will remain elevated, and any rally could easily collapse into another bull trap.
For now, GAIN is in recovery mode, but traders should tread carefully. The next few sessions will decide whether this 17% bounce is the foundation for a turnaround—or just another cruel twist in a very turbulent story.
