- AI16Z fell 35% in four days, with the price dropping to $0.272 and 24-hour volume down 30%.
- Price action shows that another 20% downside toward $0.2175 seems possible.
Amid the ongoing market correction, the top-tier crypto AI token ai16z [AI16Z] has been hit hard, forming its fourth consecutive red candle with a 35% drop in value.
This notable price decline has started to shift trader sentiment toward the bearish side and is now raising questions about when this downward momentum will end.
At press time, AI16Z traded at $0.27246, down over 14% in the last 24 hours. Unsurprisingly, trading volume has also dried up, falling 30% since yesterday.
This fading participation suggests fear is setting in, with many traders opting to exit or sit on the sidelines. Moreover, data from CoinGlass revealed that the majority of participants are betting on the bearish side.
Bearish sentiment dominates
With the continuous price decline, AI16Z’s Long/Short Ratio dropped to 0.7718, the lowest since April 2025, indicating a strong bearish sentiment among traders.
A ratio below one suggests that traders are heavily betting on the bearish side.
Specifically, 56.44% of traders held short positions, while only 43.56% remained long, marking a decisive lean toward further downside.
Source: CoinGlass
The Exchange Liquidation Map tells the same story.
On-chain metrics revealed that traders were over-leveraged at $0.264 on the lower side (support) and at $0.286 on the upper side, which acted as resistance for the AI token.
Meanwhile, around these levels, traders have built $604.70K worth of long positions and $1.11 million worth of short positions.
Source: CoinGlass
Traders’ bets show that bears dominate the asset, believing ai16z won’t reach $0.286 soon.
Technical chart shows breakdown from key range
According to AMBCrypto’s technical analysis, ai16z appears bearish and is heading toward the next support level.
The altcoin’s downside momentum began at $0.40, a strong resistance level that has consistently acted as selling pressure.
Whenever the price reaches this level, it tends to trigger a downward rally, and the same has happened this time.
Source: TradingView
Historical price action shows this pattern often leads to another 20% decline. Without renewed interest, momentum may keep sliding, potentially reaching the $0.2175 level.
Amid the ongoing downside momentum, a crypto analyst recently made a post on X (formerly Twitter), noting that AI16Z’s bull run won’t resume unless it reclaims the $0.39 zone.
For now, however, technicals, positioning, and sentiment all point in one direction—down.
