The cryptocurrency AIXBT, issued by Virtuals [AIXBT], has experienced a remarkable surge of over 290% within a week. As a result, its market capitalization has surged from $45 million to $159 million at the current moment.
Despite these recent gains, AIXBT is displaying signs of fatigue, with a 6% decline in value to $0.179. Additionally, trading volumes have decreased by 12% according to CoinMarketCap.
AIXBT previously reached its peak at $0.236 on November 30th but has retreated by 24% since then.
Looking ahead to December, a month traditionally favorable for cryptocurrencies, the question arises: can AIXBT rally to a new all-time high by the end of the year?
AIXBT Exhibits a Rounding Top Pattern
An hour chart of AIXBT reveals the formation of a rounding top pattern, often a precursor to a trend reversal from bullish to bearish.
This pattern is complemented by an inverted volume pattern, signaling a potential downturn for AIXBT.
The current battle is to maintain support at the rounding top’s neckline of $0.165. A breach below this level could lead to further declines.
Alternatively, if buyers intervene to support the price, AIXBT could challenge the $0.226 resistance level.
A breakthrough past this resistance could reignite an uptrend, potentially propelling the coin to a new all-time high.
The Relative Strength Index (RSI) has generated a purchase signal for AIXBT by crossing above the signal line.
If buyers continue to engage, AIXBT could overcome current bearish trends, paving the way for potential gains and new record highs.
Traders should monitor the on-balance volume (OBV) indicator, which has stabilized after a sharp decline. This stabilization indicates a pause in selling pressure, allowing for a potential price recovery.
Reversal of AI Coin Gains
While many artificial intelligence (AI) cryptocurrencies saw significant gains last week, these assets have retraced recently, aligning with the downturn of AIXBT.
Data from CoinMarketCap indicates a 6% drop in the total market capitalization of AI cryptos to $7.4 billion in the span of 24 hours. Trading volumes for these coins have also plummeted by 21%.
If the AI crypto sector undergoes a resurgence akin to last week, the odds of AIXBT reaching an all-time high before year-end would increase. Conversely, continued declines could lead to a more pronounced correction.