- AI16Z was unable to maintain its bullish momentum over the past week
- Despite recent losses, it presented a viable buying opportunity for swing traders, and could appreciate by 18%-45% in the coming days
At press time, ai16z [AI16Z] had shed 4.2% of its value over the last 24 hours, with the daily trading volume down by 43% too. The bullish structure it reclaimed a week ago was quickly surrendered to the bears as the price sank to the range lows once again.
In fact, the AI agent token was down 15.7% over the past week – The worst-performing token among the top 5 in the AI agents category on CoinMarketCap. Despite the bearishness in recent days, however, it seemed to present a buy opportunity for its traders.
ai16z a “buy now”- Here’s why
The break of the former lower high at $1.1 (white) on 21 January was a bullish market structure break. However, the token was not able to advance much further. It can be anticipated that it would retest the 61.8% and 78.6% retracement levels at $1.29 and $1.44, respectively.
These levels were plotted based on the downward move the altcoin completed earlier this month. Instead of testing these levels, AI16Z faced rejection at the local high at $1.23 and slumped to the $0.8 support level once again.
This formed a range, and that is why AI16Z gave a buy signal now. Swing traders can buy at market prices with a stop loss below the range, or below $0.726 to be more cautious, and take profits at the mid-range level at $1 and the range high at $1.24.
The OBV was not trending higher either, which suggested that the AI agent token was not ready for a move to the range highs and beyond. Meanwhile, the RSI on the 4-hour chart was still below neutral 50 to signal that bearish momentum was prevalent.
Author: Akashnath S
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