Oh, daddy! Things got intense in the world of artificial intelligence cryptos. If you thought this was a bed of roses, hold on tight because volatility is the name of the game.
The market capitalization of AI coins is in free fall. In the last 24 hours, it has plummeted to about $30.70 billion, a 3% drop in just one day. This is not just a stumble; it's a tumble from which even the largest AI coins were not spared. Trading volume has also hit the floor, down by 15%, and that’s a sign that people are pulling their money out of this sector.
The most talked-about case is that of AI16Z [AI16Z], which sank by 10% and is flirting with the $0.10 limit. Now, here comes the good part: analysts are seeing two paths. The price of AI16Z has been in a triangular pattern since April and is approaching a crossroads. It could break the resistance, driven by a support zone that once made it rise by 300%, or it could fall below $0.10, unleashing an even greater mass sell-off.
The CoinGlass liquidation map shows an uncomfortable truth: there is a lot of liquidity below $0.10. This means that whales and market sharks, those with deep pockets, are ready to take advantage of the panic. And if investors' long positions get liquidated, the drop could be epic. The price of AI16Z is always seeking liquidity, making a new drop quite probable.
But not all is lost. Whale orders have been increasing every time the price of AI16Z touches or drops below $0.10. This could indicate that they see an opportunity and are accumulating the coin at low prices, which could trigger a reversal. Meanwhile, retail investors, those who buy and sell small amounts, are sitting on the sidelines, always arriving late to the party.
In summary, the future of AI16Z hangs by a thread. Will the whales save the coin and push it up, or will it yield to market pressure?
We need to pay close attention to the upcoming movements because here we will see who has the strategy and who is just passing through.
