Artificial Intelligence (AI) integration into cryptocurrency appears to be a sustainable trend.
The partnership has led to the launch of multiple AI-driven cryptos like ChainOpera AI, among others like the Fartcoin [FARTCOIN] and Pippin [PIPPIN] memecoins.
ChainOpera AI’s COAI token rallied over 24% in the past 24 hours, though it’s stayed way below its peak valuation. With a potential market structure break in play, will COAI recover some of its cap?
Is COAI’s market structure shift in play?
The altcoin crashed by more than 37% on the 18th of January and has since been trading down toward the low that was created. COAI has consolidated for more than five days at these levels around $0.2714.
However, the past 24 hours saw COAI break out from this sideways movement to a day’s high of $0.3331. Since then, the market has entered a pullback, which seems to be confirming the retest area.
The Stochastic RSI was still in the overbought zone at press time, indicating buyers were still interested in the altcoin. Moreover, the MACD suggested that their strength was intact and had been growing despite the last-minute cool-off.
If the altcoin remains above the consolidation area, COAI may experience a structural shift. Conversely, the weakness might continue draining COAI’s valuation.
With numerical data showing a potential shift, the same is true for on-chain data.
Transactions surge as VCs increase their stake
As per data from BscScan, transactions of more than 1 million COAI tokens have been on the rise over the past two weeks. These orders, surpassing the aforementioned scale, moved a total of over 55 million COAI tokens during this period.
While most of them involved exchange-to-exchange transfers, there were a couple of them from individual wallets. This indicated that activity was picking up while also signaling potential accumulation.
Venture Capital (VC) has backed these transfers since 2021. AI narratives are ahead of crypto in terms of capital invested by VCs, as per Miles Deutscher.
In 2024, the ratio of AI investments to crypto investments was 8x, and it is projected to be 11x in 2025. This gives COAI a competitive advantage due to its integration of AI.
Although individuals and institutions are changing their perspectives on COAI, the liquidity levels present a distinct picture. What is in the details?
Will liquidity derail the breakout?
On the Liquidation Heatmap chart, orders formed below the level of $0.30 as the price continued to pull back at press time. Further declines could spark a long squeeze that would in turn accelerate the drop.
Still, the orders forming above the price of $0.33 may pull the price toward it if they outweigh those below. The price confinement between the liquidity zones places COAI’s price at a critical juncture in its next direction bias.
These thousands of COAI orders could derail the ongoing market structure shift while also providing a chance to accelerate it.
Final Thoughts
- ChainOpera AI is up 24% amid a structural shift, activity spike, and VC backing.
- COAI price faces a key test at the retest zone as liquidity continues to build.
