ai16z [AI16Z] stands out as one of the predominant Artificial Intelligence (AI) Agent tokens in today’s market. However, it has recently faced significant setbacks due to the recent downturn in Bitcoin’s value, which consequently led to a drop in the entire cryptocurrency market.
Current sentiment towards AI16Z suggests a strong bearish outlook, with a potential decline below the critical $1 support level looming.
Price Movement Reflects Bearish Sentiment
An analysis of the 2-hour chart for the AI token reveals a clear short-term bearish trend. The market structure within this timeframe signals a bearish outlook. Moreover, the price action has created a new lower low below $1.26, highlighting the dominance of sellers in the market.
Following a bounce to $1.72 earlier this month, Fibonacci levels and extensions were utilized to identify potential target levels. These calculations pointed towards $1.16 and $0.98 as the next likely support levels.
The CMF has consistently remained below -0.05 over the past three days, indicating a high level of selling pressure and a significant outflow of capital from the market. Additionally, the Awesome Oscillator has remained below zero, indicating an intense selling sentiment.
Liquidation Heatmap Suggests a Possible Rebound
Analysis of the liquidation heatmap for AI16Z over the past week highlights the $1.4 and $1.18 levels as key support zones. The $1.18 level, in particular, is closer to the current market price and is likely to be the short-term target.
This aligns with the bearish signals derived from the technical analysis of the 2-hour timeframe. Should there be a rebound in Bitcoin’s price, ai16z might experience a bearish reversal in the $1.4-$1.5 range. However, surpassing this level may not necessarily indicate a strong bullish trend. It would require a clear break above the lower high at $1.72 to shift the market structure towards a bullish trajectory.
Disclaimer: The content provided is personal opinion and should not be considered as financial, investment, or trading advice.