- AI16Z has made a sharp increase in its price graphics, increasing by 16.5% as the demand for long positions is skyrocketing.
- Altcoin is experiencing a high demand for long positions, risking long pressure.
AI16Z (AI16Z) experienced a massive increase in its price graphics in the last 24 hours, going from a hollow of 00.129 $ to a summit of $ 0.157. This marked a 16.5% increase in its daily cards.
During the same period, the same increased 16.31% of its volume, reaching $ 118.4 million.
Similarly, the open interests of AI16Z jumped 17.8% reaching $ 61.19 million. When the volume and the OI increase, this suggests that investors are strategically positioning themselves before the market moves – they open positions.
Source: Coanyze
Looking at the long / short ratio, this shows that these investors enter the market and open long positions.
In fact, longs represent 57.41% of future contracts, while shorts are 42.6%. When long dominate, this suggests that investors are optimistic and expect prices to increase.
In addition, the funding rate has remained positive for two consecutive days – another sign revealing the bullish feeling of the market.
However, whether this rally has legs or not remains in question.
Is a rally in advance for AI16Z or is it just a bull trap?
According to Ambcrypto’s analysis, AI16Z buyers get back on the market to position themselves strategically.
Source: tradingView
To start, RSI of AI16Z had gone from 41 to 47 at the time of the press. An RSI increase suggests that buyers are starting to return to the market and that there are more gains than losses.
Since RSI remained below the 50 bar, lower shades have always persisted. A break above 50 would solidify the bullish force.
Currently, although buyers are back on the market, they have not yet had total market control and sellers are still active.
Source: Coringlass
A trap – or a launch?
That said, the sellers have not disappeared. Spot Netflow remained positive, suggesting that exchange deposits have exceeded withdrawals.
Of course, this model generally signals taking advantage, especially by holders who had been underwater and who used the rebound to leave. Despite the increase in long, such sales pressure has diluted the strength of the trend.
As such, the upward trend seems weak.
Looking at mixed signals, it could be sure to say that AI16z sees a bull trap, and a long pressure could occur.
Therefore, AI16Z could recover from the recent increase and decrease to $ 0.146. However, if Bulls’ attempt is held, we could see Altcoin increase to $ 0.160.
