Whale Buys $2.9M AI16Z as Futures Open Interest Hits $195M – What’s Next?

A recent report from Lookonchain reveals that a whale withdrew 15,567 SOL (valued at $2.9 million) from Coinbase Prime to acquire 2.25 million AI16Z tokens at $1.29 each. 

The whale’s holdings have now increased to 2.88 million AI16Z, worth approximately $3.8 million. This purchase has coincided with a 12.45% price increase over the last 24 hours, bringing AI16Z’s value to $1.32. 

A whale withdrew 15,567 $SOL($2.9M) from #CoinbasePrime to buy 2.25M $ai16z at $1.29 6 hours ago and currently holds 2.88M $ai16z($3.8M).https://t.co/EdqSGM1KGt pic.twitter.com/JMOdOML0L4

— Lookonchain (@lookonchain) January 15, 2025

However, the token remains down 26.51% over the past week, reflecting broader market volatility.

AI16Z has a circulating supply of 1.1 billion tokens, with a current market cap of $1.43 billion. Its 24-hour trading volume is $411.61 million, indicating robust trading activity despite declining confidence among some traders.

Futures Data Reflects Growing Speculation and Liquidations

According to Coinglass, AI16Z futures open interest (OI) has risen by 3.13%, reaching $195.15 million. Since late December, OI has shown consistent growth, signaling increased participation and speculative activity. 

The trend peaked around January 6, reflecting strong trader engagement despite recent price volatility.

Liquidation data for January 15, 2025, reveals $1.99 million in total liquidations, with $1.6 million from longs and $390.9K from shorts. Binance and OKX account for the majority of liquidations, with Binance alone recording $704.27K in long liquidations. 

The imbalance between long and short liquidations points to a bearish sentiment as over-leveraged long positions continue to unwind.

Technical Indicators Suggest Critical Levels to Watch

The AI16Z/USDT chart indicates a 4.98% drop, with the price holding near the middle Bollinger Band at $1.3266, acting as immediate support. 

The lower Bollinger Band at $0.7593 represents a critical downside level if bearish momentum persists, while the upper band at $1.5980 offers a resistance target for a potential recovery.

The Money Flow Index (MFI) at 43.49 signals neutral momentum, with room for further selling or accumulation. A sustained move above $1.40 could lead to a recovery toward $1.60, while a drop below support may push the price closer to the $1.00 level.

Eliza Labs Unveils Web3 AI Vision

Eliza Labs, the developer of AI16Z, recently released a white paper introducing its AI agent toolkit, Eliza. According to the document, Eliza is designed to enable AI agents to “read and write blockchain data, interact with smart contracts, and much more.”

The toolkit aims to empower individual investors by providing systems that can “help manage their portfolios and conduct intelligent operations and trades.” 

As an open-source solution, Eliza seeks to democratize access to advanced AI functionalities, reducing barriers for broader adoption in the Web3 space.

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