One of the top AI agent cryptos, AI16Z, has seen its price drop by 15% in the last 24 hours. This drop comes amid criticism due to selling pressure from major holders of the cryptocurrency.
With the price falling, investors are wondering whether a quick recovery is possible. This analysis assesses the likelihood using key indicators.
AI16Z faces major profit taking
Three months ago, AI16Z was priced at $0.0034. However, since then, it has surged 500% and surpassed a market cap of $2 billion. This significant increase could be linked to the growing demand for tokens related to the AI agent narrative.
However, the price has not dropped by double digits after hitting $2.47 on January 2. According to Lookonchain, the token experienced this price drop because whales who profited from the rally are selling.
For example, one whale sold 1.14 million AI16Z for $2.52 million yesterday. In the same period, another sold for $2.49 million. However, it didn’t stop there, as on-chain data shows that another crypto whale dumped $4.77 million worth of tokens earlier today. If this trend continues, the price of AI16Z is at risk of falling below $2.
ai16z whale transactions. Source: X/Twitter
Additionally, BeInCrypto noted that the attention AI16Z received boosted its social dominance to 0.58%. However, at the time of writing, the metric has fallen to 0.40%.
Social dominance measures the level of discussion around a cryptocurrency relative to other assets in the market. When it increases, it means the market is having a lot of conversations about the asset, which is positive. The current decline suggests that attention is shifting to other assets, potentially signaling further price weakness for AI16Z.
ai16z Social Domain. Source: Santiment
AI16Z Price Prediction: Coin Expected to Trade Lower
From a technical perspective, trading volume around AI16Z has dropped, with the daily chart showing increased selling pressure. This drop in volume reinforces the cryptocurrency’s bearish bias.
Furthermore, AI16Z price faced resistance at $2.39, indicating that bears may have the upper hand at the moment. If the bulls fail to help the token overcome this resistance, then it may be subject to a prolonged correction.
ai16z Daily Analysis. Source: TradingView
If validated, then the price of AI agent AI16Z may decline to $1.73. On the other hand, if the bulls manage to turn the resistance into support, this may not happen. Instead, the value of the token may jump to $3.00.
The article AI Token AI16Z Faces Massive Selloff After Rally appeared first on BeInCrypto.
