AI16Z Plummets 35% in Four Days, Bearish Sentiment Surges

AI16Z, a prominent crypto AI token, has experienced a substantial decline, with its value dropping by 35% over the span of four days. The price of AI16Z plummeted to $0.272, accompanied by a 30% decrease in 24-hour trading volume. This sharp decline has shifted trader sentiment towards a bearish outlook, raising concerns about the potential for further losses.

At the time of reporting, AI16Z was trading at $0.27246, marking a 14% decrease in the last 24 hours. The reduction in trading volume suggests that fear is setting in, with many traders choosing to exit their positions or remain on the sidelines. Data indicates that the majority of participants are betting on the bearish side, with 56.44% of traders holding short positions compared to 43.56% holding long positions. This imbalance in the Long/Short Ratio, which has dropped to 0.7718, is the lowest since April 2025, further emphasizing the strong bearish sentiment among traders.

The Exchange Liquidation Map supports this bearish outlook. On-chain metrics reveal that traders were over-leveraged at $0.264 on the lower side and at $0.286 on the upper side, which acted as resistance for the AI token. Around these levels, traders have built $604.70K worth of long positions and $1.11 million worth of short positions, indicating that bears dominate the asset and believe AI16Z won’t reach $0.286 soon.

Technical analysis of AI16Z shows a bearish trend, with the altcoin heading toward the next support level. The downside momentum began at $0.40, a strong resistance level that has consistently acted as selling pressure. Historical price action shows that this pattern often leads to another 20% decline, potentially reaching the $0.2175 level without renewed interest. A crypto analyst recently noted that AI16Z’s bull run won’t resume unless it reclaims the $0.39 zone. Currently, technical indicators, positioning, and sentiment all point towards further downside movement.