The cryptocurrency known as aixbt by Virtuals [AIXBT] has experienced a remarkable surge of more than 290% within the span of seven days. This surge has led to a significant boost in the altcoin’s market capitalization, which currently stands at $159 million, up from $45 million as per the latest data available.
Despite these recent gains, AIXBT is displaying signs of potential exhaustion, with its current trading price sitting at $0.179 after a 6% decline. Moreover, trading volumes have also decreased by 12% according to data on CoinMarketCap.
While AIXBT hit an all-time high of $0.236 on November 30th, it has since experienced a 24% drop from that peak.
With December historically proving to be a favorable month for cryptocurrencies, the question arises – will AIXBT manage to rally even higher and reach a new record high before the year comes to a close?
AIXBT’s Formation of a Rounded Top Pattern
Analysis of AIXBT’s one-hour chart reveals the emergence of a rounding top pattern, often signaling a potential shift in the prevailing bullish trend to a bearish one.
This rounding top pattern is further corroborated by an inverted volume pattern, indicating a possible upcoming downturn for AIXBT.
Currently, there seems to be a struggle between bulls and bears, with AIXBT clinging to the support level around $0.165, crucial for the rounding top pattern. A breach below this support level could trigger further price declines.
Alternatively, if buyers intervene and buy the dip, AIXBT might successfully overcome the current bearish pressures and target the resistance level at $0.226.
A breakthrough above this resistance could potentially propel the altcoin back into an upward trajectory, potentially leading to a new all-time high.
Additionally, the Relative Strength Index (RSI) has exhibited a buy signal for AIXBT as it surpassed the signal line.
If buyers continue to support the cryptocurrency, it could help invalidate the ongoing bearish signals, paving the way for further price increases and possibly new record highs.
Traders are advised to keep an eye on the on-balance volume (OBV) indicator, which has stabilized following a sharp decline, hinting at a temporary halt in selling pressure and the possibility of a price recovery.
Artificial Intelligence (AI) Coins Witness a Reversal in Gains
While AI-related cryptocurrencies experienced notable price surges last week, many of these coins have retraced their gains recently, coinciding with the downtrend seen in AIXBT.
Recent data from CoinMarketCap highlights a 6% decrease in the total market capitalization of AI-based tokens within a 24-hour period, now standing at $7.4 billion. Moreover, trading volumes in this segment have also dwindled by 21%.
If the AI crypto sector stages a new rally akin to the one witnessed recently, it could bolster the chances of AIXBT reaching an all-time high by the end of the year. Conversely, prolonged dips could lead to a more pronounced correction in its price trajectory.