- 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 [AI16Z] is one of the market’s largest Artificial Intelligence (AI) Agent tokens today. Lately however, in the sector, it has also been one of the worst hit by Bitcoin’s recent losses that forced the rest of the crypto market to drop.
The sentiment behind AI16Z in the short term seemed firmly bearish at press time. A drop below the $1 support appeared likely too.
Price action underlines bearish intent
Source: AI16Z/USDT on TradingView
The 2-hour char for the AI token showed a strong short-term bearish bias. The market structure in the chosen timeframe was bearish. Additionally, the price action made a new lower low below $1.26, reinforcing the sellers’ dominance.
Before the new low was reached, a bounce to $1.72 was seen earlier this month. Using this bounce, a set of Fibonacci levels and extensions were plotted. They revealed that to the south, the next targets are $1.16 and $0.98.
The CMF has been below -0.05 for most of the last three days, which indicated high selling pressure and significant capital flow out of the market. The Awesome Oscillator was also below zero, signaling intense selling pressure.
Liquidation heatmap indicates potential for a bounce
Source: Coinglass
The liquidation heatmap of AI16Z for the past week highlighted the $1.4 and $1.18 levels as the closest magnetic zones. The $1.18-level was closer to the press time market price and the more likely, the short-term target.
Realistic or not, here’s AI16Z’s market cap in BTC’s terms
This tied in well with the bearish signals from the technical analysis of the 2-hour timeframe. In case of a BTC price bounce, ai16z could face a bearish reversal in the $1.4-$1.5 region. A move beyond this level would not necessarily be a strong bullish signal. The lower high at $1.72 must be cleared to flip the structure bullishly.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
