Here’s how intense selling pressure can push ai16z towards $0.98

by
  • ai16z was unable to reclaim the $1.8 zone as support
  • Rejection from $1.72 would likely drag the price to $1.18 and likely below $1 too

AI16Z, a significant player in the Artificial Intelligence (AI) token market, has unfortunately taken a hard blow lately due to Bitcoin‘s recent declines, which in turn caused a ripple effect throughout the entire crypto market.

At the moment, the initial impression of AI16Z is predominantly pessimistic or bearish. There’s a high probability that it might fall below its current support level of $1.

Price action underlines bearish intent

In simpler terms, during the 2-hour analysis of the AI token, there was a significant short-term bearish trend. The pattern observed in this timeframe suggested pessimism. Furthermore, the price dropped to a new low below $1.26, indicating that sellers were in control.

Previously in this month, a rise up to $1.72 had occurred prior to hitting a fresh low. Subsequently, Fibonacci retracement levels and extensions were drawn based on this increase. These lines indicated potential future support levels, suggesting that the prices might drop to approximately $1.16 and $0.98 in the near future.

For the past three days, the Cumulative Match Factor (CMF) has largely stayed under -0.05, suggesting strong selling activity and substantial withdrawal of funds from the market. Meanwhile, the Awesome Oscillator consistently fell below zero, implying heavy selling pressure.

Liquidation heatmap indicates potential for a bounce

The AI16Z’s liquidation heatmap from the previous week emphasized that $1.4 and $1.18 were the nearest resistance points with magnetic properties. Among these two, the $1.18 level was found to be closer to the current market price at press time, making it a more probable short-term goal.

Or:

For the past week, the AI16Z liquidation heatmap pinpointed the areas around $1.4 and $1.18 as strong magnetic zones. Of these two, the $1.18 level was discovered to be closer to the current market price at press time, making it a more likely short-term target.

Realistic or not, here’s AI16Z’s market cap in BTC’s terms

This aligns nicely with the pessimistic indicators derived from the 2-hour chart analysis. If Bitcoin’s price rebounds, ai16z may encounter a bearish reversal around the $1.4-$1.5 range. A rise above this point wouldn’t automatically mean a robust bullish trend. Only when the previous high at $1.72 is surpassed will the structure show signs of becoming bullish.

Read More

2025-01-11 12:07