Top traders on Binance and OKX are accumulating AI16Z, placing significant buy orders despite a 19.05% drop in the past week. The token has fallen by another 4.59% in the last 24 hours, but top traders seem to be diverging from the broader bearish sentiment.
AI16Z has been trading within an ascending channel on the daily chart, characterized by higher highs and lows. However, after retreating from the resistance level, the price dropped steadily. According to analysts, this drop is expected to stop at the 0.618 Fibonacci retracement level, which aligns with a key support zone at approximately $0.80.
From this support zone, AI16Z has potential to rebound and rally to $2.60, representing significant gains of 325% from the $0.80-level. Top traders are buying against market odds, as evidenced by high long-to-short ratios on Binance and OKX. The ratio above 1 indicates more buyers than sellers.
Exchange netflows also suggest sustained confidence among investors. Over the past five days, approximately $8.24 million worth of AI16Z was withdrawn from exchanges into private wallets, likely for long-term storage. Additionally, the funding rate has increased, indicating that long traders are currently paying the premium.
The broader derivatives market has been bullish for AI16Z, with both the funding rate and Open Interest on the rise. This optimism among derivative market participants can drive the overall market higher. For AI16Z to break into new highs, a shift or divergence in these key metrics might be necessary until then, the asset is likely to maintain its current range or potentially trend higher from this level.
Source: https://ambcrypto.com/ai16z-a-potential-rally-to-2-6-top-traders-have-this-to-say