AI16Z, a memecoin, has seen its price rise by 16.5% in the last 24 hours, driven by strong demand for long positions. The altcoin’s daily volume reached $118.4 million, with Open Interest increasing by 17.8%. This surge in longs suggests that investors are positioning themselves for a potential market move upwards.
The Long/Short Ratio shows that longs account for 57.41% of Future contracts, while shorts make up 42.6%. A dominant long position can indicate bullish sentiment. Additionally, the Funding Rate has remained positive for two straight days, signaling strong market enthusiasm.
However, experts are cautious about the rally’s sustainability. AI16Z buyers have returned to the market, but sellers remain active, creating mixed signals. Spot netflow shows exchange deposits outpacing withdrawals, which often indicates profit-taking by holders who had been underwater. This selling pressure has diluted the uptrend’s strength, leaving its legitimacy in question.
The situation suggests that AI16Z might be experiencing a bull trap or a long squeeze. If bulls can hold their position, the altcoin could potentially surge to $0.160; otherwise, it may decline to $0.146.
Source: https://ambcrypto.com/ai16z-rockets-16-as-longs-dominate-are-sellers-lying-in-wait