With the free fall of cryptocurrencies, even the most successful are not spared. Solana meme ai16z price joined other tokens with double-digit losses this week. It has formed a risky chart pattern that indicates a decline, potentially to $1.
Ai16z Price Analysis as Risky Pattern Emerges
The ai16z price has become one of the best performing cryptocurrencies Over the past few months, investors have turned to AI agents and Solana meme coins. It has soared more than 13,000% since its lowest point in November and its highest point this year.
The 4H chart suggests that the token could see more declines in the short term as it gets closer to the markdown phase. It has formed what looks like a double top chart pattern at $2.36, a popular bearish reversal sign whose neckline is at $1.7198.
The ai16z coin has also moved below the 50-period moving average and is slowly approaching the neckline. Therefore, a decline below the neckline at $1.7198 will validate the double top pattern and indicate more declines.
Such price action would result in an even steeper downtrend, potentially to the psychological point of $1, or about 45% below the current level. This price is notable because it also coincides with the December 13 high point.
The bearish outlook will become invalid if the token breaks the double top around the $2.40 level. Such a move would mean more buyers in the market may want to push it to the psychological $2 level.
The Wyckoff method explains the crash of the Solana Meme AI16Z
The price of ai16z has crashed due to the ongoing sell-off in the crypto industry which has significantly affected the meme coins. CoinGecko data shows that most Solana meme parts have plunged by double digits in the last 24 hours. This crash caused their combined market capitalization to plummet from more than $21 billion last weekend to $18.6 billion.
Pengu Penguins, Bonk, Dogwifhat, Fartcoin, Popcat and Gigachad all plunged more than 10% during this period. Bitcoin also dipped below $95,000, leading to more sales of smaller tokens.
The concept of the Wyckoff method also explains why the price of ai16z has collapsed. This approach explains how assets move from an accumulation phase with little price movement, followed by markup, distribution, and markdown.
The daily chart below shows these steps on the ai16z token. It remained in accumulation in November, then the increase began in December. The recent movement could be part of the distribution and will be followed by the markdown.
Frequently Asked Questions (FAQ)
The price of the ai16z meme is falling due to the continued fall of most cryptocurrencies and the fact that many beneficiaries of its rise have started selling.
The most likely scenario is that the token plunges to the psychological point of $1, which is about 45% below the current level.
AI16z price could rebound when the rest of the cryptocurrency rebounds. This price action will occur as investors buy the dip.
crisp
Crispus is a seasoned financial analyst at CoinGape with over 12 years of experience. It focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His ideas have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com and MoneyTransfers.com.
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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