Key Insights
- The market dip from the previous week was especially harsh on the performance of Ai16z.
- The cryptocurrency has now fallen below the psychological $1 mark and is looking towards lower lows.
- Immediate support zones include the $0.62 price level and $0.5.
- The main resistances include the psychological $1 zone and $1.31, which could open the door to $1.2 or even higher to $1.7.
The crypto market has been through a major rollercoaster over the last week.
However, while mainstream cryptocurrencies crashed and are now attempting to make their way upwards, Ai16z—a Solana-based altcoin—seems to be having some ongoing issues.
According to data from CoinMarketCap, this token has lost over a billion dollars in market cap this month, leaving investors confused as to what comes next.
Here’s a closer look at what Ai16z could be up to.
What Went Wrong In The Market?
Ai16z has been through a steep decline lately, and is trading at a 16% decline over the last week according to CoinMarketCap.
The cryptocurrency is now trading at around $0.8 after falling by nearly 70% from its all-time high around $2.48.
These figures show some ongoing bearish sentiment for the cryptocurrency, as investors continue to hope for a bullish reversal.
What The Charts Say
According to technical indicators in the charts like the RSI and 200-day EMA, the bearish sentiment might not be gone yet.
The RSI for example, shows a dominance on the part of the bears, compared to the bulls.
This indicator shows a reading of 41.6 on the daily chart, with the signal line nowhere near a bullish crossover with the MACD.
According to the 4-hour chart, the immediate resistance for the cryptocurrency sits around $1.3.
Its support zone also sits at around $0.62, which indicates that a reversal from anywhere between $0.62 and $0.8 could help Ai16z retest its resistance level of $1.30.
A sustained price above this price level could be crucial to a comeback, and could even pave the way to a rise toward $1.72.
Since the cryptocurrency already lost its standing between $0.916 and the $1 mark, an increase in bearish pressure from here could push Ai16Z as low as $0.50.
The current behavior of Ai16z stands in stark contrast to its rise between October and December of last year.
The new year, however, has brought a sharp correction that has wiped off more than 50% of its value, right in the middle of a bull market.
Technical analysis shows that if the bullish momentum returns and is sustained, Ai16z could be set to face resistance between the $1.62-$1.83 Fibonacci retracement zone, which could be the gateway to further highs.
Investors looking for entry positions into the market should monitor the aforementioned levels.
They should also keep in mind that while a short term recovery is possible, the long-term prospects for the cryptocurrency depend strongly on breaking above the mentioned resistance zones.
