AIOZ Tests Lower Support Levels After Profit-Taking Slows Momentum

AIOZ has been among the top-performing crypto assets recently, recording a remarkable 178.45% price surge within a single month.

AIOZ has been on a remarkable bull run in recent times, with its price surging by 178.45% within a single month. This impressive performance has captivated the attention of many in the crypto community.

Over the past 24 hours alone, the asset has gained a substantial 16.06%, further bolstering its strong momentum. As the asset continues to rally, AMBCrypto’s analysis suggests that a slight correction may precede a more pronounced upswing, setting the stage for another potential high.

Profit-taking may temporarily slow AIOZ’s momentum

As AIOZ makes waves in the market, some traders have opted to cash in on its impressive price performance. The asset's market capitalization increased by 16.08% to $1.34 billion, while trading volume rose by $166.60 million, showing a 71.13% gain, as reported by CoinMarketCap.

When an asset surges in price, traders may choose to sell a portion of their holdings to secure gains, a practice known as profit-taking. This behavior tends to intensify following a sharp rally, as is the case with AIOZ.

One indicator of profit-taking is a rise in Exchange Netflow, where significant amounts of an asset are transferred from wallets to exchanges in preparation for sales. At the time of writing, over $1 million worth of AIOZ has been moved to exchanges within the past 24 hours.

Such actions, which increase asset supply, often result in price declines unless offset by rising demand. According to AMBCrypto’s analysis, if this trend continues, AIOZ could test its next support level.

AIOZ tests lower support levels

The selling pressure encountered by AIOZ may push the asset lower on the price chart, seeking a support level where buying interest can accumulate before resuming its upward trajectory.

Analyzing AIOZ’s chart with Fibonacci retracement levels suggests the asset could drop to the 0.9472 zone, where sufficient buy orders may exist to fuel a recovery.

If this support fails to hold, AIOZ might retrace 50% of its recent gains, potentially dipping further to the red Fibonacci line at 0.8297 before an upward movement is likely.

If AIOZ rebounds from either of these levels, it could pave the way for a new all-time high in the near future.

Strong bullish sentiment persists

Data from Coinglass indicates that Open Interest, which tracks the total number of unsettled derivative contracts in the market, has favored long traders. This trend is evident from the recent surge in Open Interest, which has increased by 13.07% over the past 24 hours to reach $9.41 million.

This aligns with the increasing number of long contracts, with the Long-to-Short ratio reaching 1.0028 at the time of writing. When this ratio remains above 1, it suggests that long traders hold greater influence in the market, potentially driving prices higher.