🌎 Ai16z Price Soars 32% Amid Whale Buying Activity

Solana Meme Coin Ai16z Sees 32% Rebound Amidst Whale Buying Activity

Ai16z, the third-largest Solana meme coin, experienced a significant price rebound on Friday, rising by 32% to $1.6830 from its lowest level this week. The token’s market capitalization now stands at over $1.84 billion.

Whale Buying Activity Fuels Price Rebound

On-chain data indicates that the recent price rebound was largely driven by whale buying activity. According to Nansen data, one whale purchased tokens worth over $1.58 million on Friday, anticipating a bounce back. The same trader now holds ai16z tokens valued at over $2.8 million.

Other whales also participated in the buying activity, with two traders acquiring tokens worth over $1 million and ten more buying coins valued at over $500,000 during the same period. This activity suggests that these traders expect the meme coin to recover once the current selling phase ends.

Smart Money Investors Continue to Offload Ai16z Tokens

However, more data shows that smart money investors have continued to offload ai16z tokens in recent weeks. The number of smart money holders has dropped to fewer than 80, down from 118 on December 25. Historically, changes in smart money behavior have often been reliable indicators of an impending price decline.

Profitable Traders Take Profits

Some of the most profitable ai16z traders have started to take profits. The second and third most profitable traders have sold nearly all of their tokens, realizing $39 million and $20 million in profits, respectively. The most profitable ai16z trader has also sold tokens worth $8.8 million and holds an unrealized profit of $30 million.

Is the Ai16z Price Rebound a Dead Cat Bounce?

The ongoing ai16z price rebound could be a dead cat bounce — a situation where an asset in a downtrend briefly recovers before resuming its decline.

The token has retested the critical level at $1.7177 on the four-hour chart. This is an important point, as it was the neckline of the double-top pattern at $2.35. A double-top pattern is a well-known bearish indicator, while a break-and-retest formation often signals a continuation of the trend.

Additionally, the ai16z price has fallen below the 50-period moving average. Therefore, unless the token breaks above the 50-period moving average at $1.7490, there is a risk of a continued downtrend. If this rebound proves to be a dead cat bounce, the next level to watch will be this week’s low of $1.2663.

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