A Whale Has Acquired 5.57 Million ai16z [AI16Z] Tokens Worth $2 Million

A whale has acquired 5.57 million ai16z [AI16Z] tokens worth $2 million through Jupiter Aggregator, drawing attention as the market continues to show conflicting technical and sentiment signals.

A recent report by Coinglass has highlighted a massive 5.57 million ai16z [AI16Z] tokens acquired by a whale for $2 million through Jupiter Aggregator as the cryptocurrency market continues to display mixed technical and market sentiment signals.

At the time of writing, AI16Z is trading at $0.3455, showing a 10.38% decrease in the last 24 hours.

As the market keeps unfolding, large transactions like this one usually spark speculation among traders. However, considering the current price action and broader derivatives data, it seems that the immediate direction of the market remains ambiguous.

A closer look at the derivatives market reveals that Open Interest (OI) has decreased by 13.88% to reach $117.45 million, indicating a broad reduction in positions by traders. This decrease in OI might be seen as an indication of decreasing confidence among traders or increased risk aversion following the recent market volatility.

Moreover, we can observe that leverage is also decreasing, which is often a sign of an upcoming trend reset. However, it’s important to note that a steep drop in OI without a recovery in the price may be signaling uncertainty rather than strong conviction in a particular direction.

Only when we see an increase in new positions alongside rising volume will the market be able to move out of this choppy trading range and continue its trend. It appears that buyers are struggling to push the price above key resistance levels.

In the past 24 hours, there have been $98.81K in long liquidations, in stark contrast to just $3.37K in short liquidations. This disparity suggests that the bulls were caught offside as the market shifted.

Despite this significant liquidation, the cryptocurrency failed to establish higher lows or regain previous support levels. Among the major exchanges, Binance and Bybit accounted for the majority of these liquidations, which might indicate that institutions are de-risking their positions.

This complete imbalance in the liquidations map paints a bearish outlook, especially if the price fails to stabilize and show clear signs of a reversal.

Source: Coinglass

In other news, the liquidation map from Coinglass shows dense short leverage below $0.339 and a buildup above $0.36, with the press time price of $0.3455 sitting in a key decision zone.

While clearing shorts below $0.34 previously triggered upward wicks, the price failed to hold those levels, ultimately indicating that the buyer strength may not yet match the short pressure.

Furthermore, the rising short leverage on Bybit and OKX suggests traders are expecting further downside. Therefore, unless bulls push decisively above $0.36, it seems that the short pressure could regain control.

Source: Coinglass

The technical structure of AI16Z shows that the cryptocurrency bounced off the 0.382 Fibonacci level at $0.3430, but the reaction remains weak. The 0.236 Fib at $0.3678 has acted as strong resistance, rejecting upward attempts.

At press time, the Relative Strength Index (RSI) stands at 51.23, showing neutral momentum but no clear bullish divergence. Also, the failed attempts to reclaim $0.36 show that bulls lack follow-through.

Therefore, the price may continue in a ranging motion or decline further toward $0.3229 (0.5 Fib) and $0.3029 (0.618 Fib) if the volume doesn’t return and RSI drifts below 50.

Source: TradingView

The persistent decline in Open Interest, especially during a price bounce, is a bearish signal, indicating a lack of follow-through and increasing risk aversion.

Moreover, the significant imbalance in liquidations, with $98.81K in longs versus $3.37K in shorts, suggests that the price movements caught the bulls by surprise.

The complete absence of short liquidations during the downward trends and the massive liquidation of longs at the Binance exchange point towards a scenario where institutional investors were massively holding long positions that got liquidated.

Finally, the neutral RSI values and the failed attempts to break above Fib levels highlight a lack of buying pressure and a potential continuation of the downward trend.

Despite a $2 million whale purchase, AI16Z has failed to hold above key levels. Long liquidations dominate, OI is declining, and RSI indicates weakening momentum.

Unless bulls reclaim $0.3678 and shift volume in their favor, bearish signals suggest continued downside risk.

While this whale entry may indicate long-term accumulation, the short-term market structure remains fragile and vulnerable to deeper corrections.