- On the daily charts, Ai16Z surged up by 12.57%
- Ai16Z has been seeing significant demand, but spot participants are yet to turn bullish
Over the last 24 hours, Ai16z registered a strong upswing on its price charts. It appreciated by 15.49% from a low of $0.2100 to a high of $0.2587, before retracing slightly.
Over the same period, the memecoin’s derivatives markets all turned bullish. In fact, its total volume climbed up by 67.36%, reaching $311.29 million. Such a surge in volume is usually a sign of higher demand and interest in the memecoin.
Sources: Coinglass
Significantly, this demand can be observed across the market in both Futures and Spot.
For starters, in the Futures market, investors have been very active, with the altcoin’s Open Interest surging by 15.7% and hitting $90.57 million. A hike in this metric means that a good number of investors are entering the market to take strategic positions. While these new investors have been entering the market, existing ones have held on to their positions too.
Source: Coinalyze
Among these investors, most of them are now taking long positions.
This can be evidenced by the fact that Ai16z’s funding rate held on strong within positive territory. A positive funding rate means that investors are mostly bullish and expect the price to rise further from its press time level.
Source: Coinglass
Besides the Futures contracts, exchange activities also indicated a high demand for the memecoin.
Consider this – Ai16z’s exchange netflows have been negative for three consecutive days. This implied that while Ai16Z surged, it was driven largely by exchange demand. Simply put, exchanges have been recording more withdrawals than deposits – A sign of a high accumulation rate.
What next for Ai16Z?
According to AMBCrypto’s analysis, Ai16Z is now seeing a shift in market sentiment after its latest dip. Thus, after dropping to a low of $0.19, the memecoin successfully defended its $0.2 support and bounced. This alluded to strengthening upward momentum as demand started to recover across the board.
The uptick in momentum can be validated by the recent bullish crossover on the memecoin’s Stoch. Over the last 24 hours, Ai16Z’s Stoch surged to make a crossover – Signaling strong upward momentum.
If these conditions hold, we will see Ai16Z rally to $0.287. For this outlook to hold, the memecoin needs a daily close above $0.257.
Source: Coinalyze
However, the only handle that Ai16Z bulls have to overcome is sellers in the Spot market.
In the last 24 hours, Ai16Z recorded a negative delta of 29.9k, with sellers offloading 250.9k. This selling pressure resulted in the aforementioned pullback on the daily charts. If activities here don’t shift towards buying, we could see a full-blown retracement with Ai16Z dropping to $0.22.
