Date: Thu, Jan 09, 2025, 09:07 AM GMT
The cryptocurrency market has faced a sharp downturn over the past 72 hours, with Bitcoin (BTC) dropping from $102K to its current level above $93K.
This broad market decline has impacted trending AI Agent tokens, including AI16Z, GRIFFAIN, and ZEREBRO, which have all experienced double-digit percentage drops. However, these tokens are now holding critical support levels, signaling potential for a rebound.
ai16z (AI16Z)
AI16Z’s price recently dropped from $2.36 to a key support level of $1.39, which had previously acted as resistance. Currently, the token has managed to recover slightly and is trading at $1.48.
The $1.39 level represents a crucial area for buyers, as maintaining this support could allow the price to stabilize and potentially recover toward the $2.36 resistance zone. A breakdown below $1.39, could see the price retreat further to the lower support level of $1.14.
From a technical perspective, the MACD indicator shows bearish momentum, with the lines trending downward. At the same time, the RSI has fallen into oversold territory, suggesting the possibility of a price reversal if buying interest emerges.
GRIFFAIN (GRIFFAIN)
GRIFFAIN has experienced a similar correction, falling from its all-time high of $0.5290 to its current position near $0.3705. The token is currently testing a support range between $0.36 and $0.40, which has previously acted as a significant resistance zone.
Holding within this range is crucial for maintaining bullish sentiment, as it may create an opportunity for a recovery toward the next resistance level of $0.5290. If GRIFFAIN fails to maintain support, further downside could reflect the broader market weakness.
On the technical front, the MACD indicator is displaying signs of declining bearish momentum, while the RSI has dropped to 33.64, nearing oversold conditions. Historically, such levels have often provided an opportunity for buyers to re-enter the market, potentially driving a rebound.
Zerebro (ZEREBRO)
ZEREBRO has seen a significant decline, with its price dropping from $0.58 to $0.33, where it is now testing a crucial ascending trendline. This trendline has acted as strong support in the past, making its current level pivotal for the token’s future direction.
If ZEREBRO manages to hold this trendline, a rebound toward the $0.58 resistance level may follow. However, failure to hold the current level could signal further downside.
The technical indicators reflect a mixed outlook. The MACD remains in bearish territory, highlighting continued selling pressure. However, the RSI has plunged to 20.03, signaling extreme oversold conditions. Such levels often precede a potential price recovery, particularly if market sentiment improves.
What’s Ahead?
The resilience of AI16Z, GRIFFAIN, and ZEREBRO at these key support levels suggests that a recovery may be on the horizon. The technical indicators, including oversold RSI levels and easing bearish momentum on the MACD, further bolster the case for a rebound.
However, the tokens’ performance will also depend on Bitcoin’s ability to hold its critical $91K-$94K support range. If BTC stabilizes or rebounds, it could provide a broader market lift, enhancing the recovery prospects for these AI-focused altcoins.
However, traders should monitor key technical signals such as improvements in MACD and RSI, alongside Bitcoin’s price movements, to determine whether a recovery is likely in the short term.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.