Categories: Business

AI16Z – A potential rally to $2.6? The best traders have THIS to say!

  • AI16Z could fall further before rebounding and climbing back to $2.6
  • Top traders on Binance and OKX are now accumulating the token and placing large buy orders.

Over the past week, AI16Z has dropped 19.05% on the charts. In the last 24 hours alone, it has fallen another 4.59%, with even greater downside potential based on its chart patterns.

However, according to AMBCrypto’s assessment, top traders on Binance and OKX appear to be deviating from the broader bearish sentiment. This implies that there may be some optimism among experienced market participants, despite the altcoin’s prevailing bearish structure.

Is a drop imminent for AI16Z?

AI16Z is trading in a one-month ascending channel on the daily chart, characterized by a series of higher highs and lower lows within a defined range of support and resistance.

At the time of writing, the price had pulled back from the channel’s resistance level, forming a lower low as the asset began to decline steadily.

Source: TradingView

Based on this analyst’s chart, we can predict that this decline will stop at the 0.618 Fibonacci retracement level. This would be in line with the base of the ascending channel at around $0.80 – a level considered a key support zone for the cryptocurrency.

From this support zone, AI16Z has the potential to rebound and rally back to $2.60, representing significant gains of 325% from the $0.80 level.

The best traders buy against the market odds

As market conditions at press time indicated a potential decline, top traders on Binance and OKX are opening long positions in AI16Z. This trend was identified using the long/short ratio, which measures the number of buyers relative to sellers. A ratio greater than 1 indicates that there are more buyers, while a value less than 1 means that sellers are dominant.

At the time of writing, the long/short ratio stood at 3.3497 for Binance top traders and 4.15 for OKX traders. These high numbers hint at strong bullish sentiments among high-level market participants, which could influence a broader market recovery.

Spot trading data also supported this bullish outlook. In fact, the supply of AI16Z on cryptocurrency exchanges is steadily decreasing – a sign of accumulation by long-term holders.

Source: Coinglass

Over the past 24 hours, exchange net flows – a metric highlighting the movement of tokens in and out of exchanges – were negative, at -$2.74 million. This means that $2.74 million worth of AI16Z was moved from exchanges to private wallets, likely for long-term storage.

This negative trend in net FX flows has persisted for five days, with approximately $8.24 million of AI16Z withdrawn during this period – a sign of sustained confidence among investors.

Bullish momentum strengthens for AI16Z

The broader derivatives market has been significantly bullish on AI16Z, with both the funding rate and open interest rising.

The funding rate, a measure of whether buyers or sellers dominate the market, revealed that long traders are currently paying the premium. At 0.0440%, its highest level since January 13, the financing rate highlighted the strength of the market for buyers.

Source: Coinglass

This upward trend corresponds to an increase in Open Interest, which measures the total value of unsettled derivative contracts. AI16Z’s open interest jumped 5.43% to $206.52 million, further signaling growing confidence among traders.

When open interest and funding rate increase, it is a sign of strong optimism among derivatives market participants. This optimism can play a major role in driving the overall market higher.

For AI16Z to reach new highs, a change or divergence in these key indicators may be necessary. Until then, the asset is likely to maintain its current range or potentially trend upward from this level.

Next: Ethereum’s Next Price Move – Here are the key levels to watch!

remon Buul

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