Solana Meme ai16z Price Risky Pattern Points To a Crash To $1

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Amidst the current plunge of cryptocurrencies, not even top performers like Solana and AI16z’s meme coin are immune. Both have suffered significant declines this week, with Solana’s price forming a concerning chart pattern that hints at further drops, possibly reaching $1.

Ai16z Price Analysis As A Risky Pattern Emerges

In recent months, AI16z’s price has been among the top-performing cryptocurrencies due to investors shifting towards AI agent and Solana meme coins. It surged more than 13,000% from its lowest point in November to its peak this year.

In simpler terms, the 4H chart indicates that the token might experience further price drops in the short term because it’s approaching the markdown phase. It has created a chart pattern that looks like a double-top near $2.36, which is often seen as a bearish reversal signal. The line where this pattern could potentially reverse is around $1.7198.

The AI16Z currency has dipped beneath its 50-day moving average and is getting closer to the neckline. If it falls below the neckline at approximately $1.7198, this would confirm the double-top formation and suggest further price decreases ahead.

This trend in pricing may cause it to drop further, possibly reaching approximately $1, which is 45% lower than the current value. This price point is significant as it was also the peak reached on December 13.

As a researcher, I’ve identified a crucial point for the token’s price: the double-top around $2.40. If this level is surpassed, it would invalidate my current bearish perspective. This upward movement could indicate increased buying interest in the market, potentially driving the token towards the psychological resistance at $2.

Wyckoff Method Explains The Solana Meme AI16Z Crash

Due to a widespread selling trend across the cryptocurrency market, which significantly impacted meme coins, the price of ai16z has plummeted. Data from CoinGecko indicates that many Solana-based meme coins have fallen by more than 10% in the past day. This crash has reduced their collective market capitalization from approximately $21 billion over the weekend to $18.6 billion currently.

In this timeframe, Penguins (Pengu), Bonk, Dogwhatever (Dogwifhat), Fart money (Fartcoin), Popcat, and Gigaman (Gigachad) have all dropped by more than 10%. Meanwhile, Bitcoin has dipped below $95,000, causing a surge in sell-offs for smaller tokens.

According to the Wyckoff Method, the steep decline in the ai16z’s price can be attributed to its underlying principles. These principles suggest that assets go through distinct phases: accumulation, where prices remain relatively stable; markup, during which prices rise significantly due to increased buying; distribution, where prices start to fall as sellers outnumber buyers; and finally, markdown, a period of further price decline.

Below is a daily breakdown of the ai16z token’s stages. From November, it was in an accumulation phase, followed by a markup that began in December. The current movement might be indicative of a distribution period which could then lead to a markdown.

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2025-01-08 18:44