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ai16z – Profit-taking whales could push altcoin’s price down to…
The recent rally of AI agent ai16z [AI16Z] has been nothing short of phenomenal, with the token skyrocketing by a staggering 200% in just two weeks. The excitement around the Eliza framework-powered token is understandable, given its immense potential and the massive interest it has garnered. However, this euphoria may soon be tempered by profit-taking whales, who have already begun cashing out from their positions.
According to analytics firm LookOnChain, a significant whale recently sold all 2.27 million $ai16z ($4.77 million) at $2.1, realizing a whopping 1008% profit in the process. This is just one example of the whales taking profits as the token approaches the psychological barrier of $2.
The sudden surge in speculative activity has led to an unprecedented surge in Open Interest (OI), with OI skyrocketing from $1 million to over $80 million, a whopping 8000% hike since December 29. This is a strong indication that the market is heavily skewed towards long positions, leaving it vulnerable to a sharp correction.
The price action of ai16z has closely mirrored its trend, with the token surging higher on heavy buying pressure and subsequently correcting lower as whales take profits. Given this context, it’s not impossible to imagine a scenario where the token’s price plummets to key moving averages (MAs) such as $1.5 or even $1.0 if profit-taking accelerates.
However, there is also a possibility that ai16z could continue its uptrend momentum if it manages to break above the 2.618 level, currently situated around $2.5. This would not only be a major technical resistance but also a significant bullish signal.
Source: ambcrypto.com
