ai16z sees a 13.15% price drop after short, swift rally – What happens next?

Key Points

1. ai16z saw a 30% rally to $0.175 before a swift pullback, leaving it only 2.05% up over the past day.

2. High Open Interest (OI) and positive funding rate indicated intense short-term sentiment, which may have contributed to the bearish reversal.

3. The 1-day chart showed a bearish trend since May, with the token ranging between $0.126 and $0.169 over the past two weeks.

4. A bearish divergence between the MFI and price on the 4-hour chart suggested potential further drops to $0.135 or $0.126.

5. The CMF indicator remained below -0.05, indicating consistent selling pressure and range-bound trading rather than a rally or consolidation.