Key Takeaways
AI coin struggle in the last 24 hours with AI16Z in the lead. Liquidity below recent price action could force another drop but buyers were stepping up.
The broader cryptocurrency market was in decline, but AI-focused tokens bore the brunt of the sell-off as investors rotated capital out of the sector.
The hype surrounding Solana [SOL] -based AI projects was fading rapidly, with bearish sentiment accelerating the drop.
At press time, the total market capitalization of AI coins had fallen to $30.70 billion, marking a 3% decline on the day.
Trading volume also saw a sharp decrease, plunging 15%, according to data from CoinMarketCap. Even large-cap AI tokens weren’t spared, suffering similar losses.
One notable example, ai16Z [AI16Z] , had dropped 10% at the time of writing. Despite the steep decline, its price was hovering near a potentially favorable support zone, suggesting a possible rebound opportunity.
AI16Z price has been trading in a triangle pattern since the start of April. The price has failed several times to break above the slanting resistance since the high on the 12th of May.
Price was trading below the SuperTrend indicator but it could reverse as the pattern nears breakout. The AI coin was now at a zone that saw it surge about 300% in only one month.
Alternatively a breakdown below $0.10 could trigger more sell-off. The feeling around AI16Z was mixed as price action was bearish but on-chain metrics were shifting.
Looking at the liquidation heatmap, AI16Z was forming deeper liquidity levels below $0.10 than any other level.
The most dominant being at $0.99. This indicated that the odds of a further drop were high as price tends to follow
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Author: Lennox Gitonga
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