- ai16z was unable to reclaim the $1.8 area as support.
- A rejection at $1.72 would likely push the price down to $1.18, also likely below $1.
ai16z (AI16Z) is one of the largest artificial intelligence (AI) agent tokens on the market today. However, Bitcoin’s recent losses were also one of the worst hits for the sector recently, sending the rest of the cryptocurrency market lower.
In the short term, sentiment towards AI16Z appeared decidedly bearish at press time. There is a high possibility that it will fall below the $1 support line.
Price action highlights bearish intentions
Source: TradingView AI16Z/USDT
AI token’s 2-hour text showed a strong short-term bearish bias. The market structure during the selected period was bearish. The price action also drove the minimum price below $1.26, strengthening sellers’ dominance.
Before reaching new lows, it was seen bouncing back to $1.72 earlier this month. Using this bounce, a series of Fibonacci levels and extensions were drawn. They revealed that the next targets for the South are $1.16 and $0.98.
CMF has remained below -0.05 for most of the last three days, which means selling pressure is high and significant capital is leaving the market. The Awesome Oscillator also appeared below 0, indicating extreme selling pressure.
The liquidation heatmap indicates the likelihood of a rebound.
Source: Coinglass
Last week’s liquidation heatmap for AI16Z highlighted the $1.4 and $1.18 levels as the closest magnetic zones. The $1.18 level is closer to the market price at press time and is more likely a short-term target.
Realistic or not, AI16Z’s market cap in BTC terms is:
This matches well with the bearish signals from the two-hour technical analysis. If BTC price rebounds, ai16z could face a bearish reversal in the $1.4-$1.5 region. A move above this level is not necessarily a strong bullish signal. A clearing of the lower highs of $1.72 is needed to reverse the structure to a bullish one.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.