AI Agent Token AI16Z Faces Major Sell-Off Following 500% Price Hike

One of the leading AI agent cryptos AI16Z has seen its price decrease by 15% in the last 24 hours. This decrease comes amid notable selling pressure from the cryptocurrency’s key holders.

As the price declines, investors wonder if a quick rebound is possible. This analysis evaluates the chance using key indicators.

ai16z Encounters Massive Profit-Taking

Three months ago, the price of AI16Z was $0.0034. However, it has since increased by 500% and has surpassed a market capitalization of $2 billion. This significant increase could be linked to the rising demand for tokens related to the AI agents’ narrative.

However, after hitting $2.47 on January 2, the price has not dropped by double digits. According to Lookonchain, the token experienced this price decline because whales who have made some profits from the rally are selling.

For instance, one whale sold 1.14 million AI16Z for $2.52 million yesterday. Within the same period, another sold for $2.49 million. However, it did not end there, as on-chain data shows that another crypto whale let go of $4.77 million worth of the token earlier today. Should this trend continue, the AI16Z price risks dropping below $2.

ai16z Whale Transactions. Source: X/Twitter

Furthermore, BeInCrypto observed that the attention AI16Z received drove its social dominance to hit 0.58%. However, as of this writing, the metric has dropped to 0.40%. 

Social dominance measures the level of discussions around a cryptocurrency relative to other assets in the market. When it increases, it means that the market is having a lot of conversations about the asset, which is bullish. The current decline suggests that attention is shifting to other assets, potentially signaling further price weakness for AI16Z.

ai16z Social Dominance. Source: Santiment

AI16Z Price Prediction: Coin to Trade Lower

From a technical perspective, the trading volume around AI16Z has dropped, with the daily chart showing increasing selling pressure. This drop in volume reinforces the cryptocurrency’s bearish bias.

Besides that, the AI16Z price faced resistance at $2.39, indicating bears might currently have the upper hand. Should bulls fail to help the token breach this resistance, then it could be due for an extended correction.

ai16z Daily Analysis. Source: TradingView

If validated, then the AI agent AI16Z price might decrease to $1.73. On the other hand, if bulls can successfully flip the resistance into support, this might not happen. Instead, the token’s value might jump toward $3.