ChainOpera AI Faces 31% Decline: A Crucial Test for COAI
Key Insights
What Fuels COAI's Bearish Outlook?
ChainOpera AI's value plummeted by over 31% in the past day, attributed to a shift in capital towards larger AI tokens such as TAO.
Prospects for a COAI Recovery
The potential rebound depends on maintaining a price above $4 and surpassing previous resistance levels.
ChainOpera AI [COAI] has been a leading performer in the crypto market this October. Despite its rapid ascent, COAI remains one of the most bearish tokens according to public sentiment.
Data from CryptoRank indicates a surge of over 1848% in Q4, primarily driven by October gains. Nevertheless, it topped CoinMarketCap's trending tokens with a sharp 31% decline in the last 24 hours.
Factors Behind the Bearish Sentiment
Market Prophit data suggests COAI leads bearish sentiment among retail investors, although institutional investors haven't mirrored this trend. The 31% daily crash, despite attempts to stabilize at $4, contributed to this sentiment. A minor 5% increase in daily trading volume indicates limited engagement from major players. Additionally, a rise in capitalization among top sector tokens signifies a rotation away from this emerging coin.
At press time, Bittensor [TAO] led with a 10% gain, while other big caps like Near Protocol [NEAR] and Internet Protocol [ICP] showed weekly increases. AI agents such as Virtual Protocol [VIRTUAL] also surged over 61% this week, drawing capital from COAI.
Will History Repeat?
COAI is stabilizing above $4 after testing this level thrice. Historically, this support zone has driven prices above $20, peaking near $30. Technically, the altcoin is consolidating between $4 and $26, with a bullish outlook supported by a potential MACD crossover and decreasing selling pressure.
The momentum indicator improved from negative 13 to minus 2, indicating a slow return of bullish control, though a complete structural shift is pending. Should history repeat, COAI might revisit the $25 zone, with $20 as a target. Conversely, a break below $4 could invalidate this bullish expectation, potentially driving the price to $1.82.
Order Flow Analysis
The ultimate target remains $20 to $25, as per the price structure. The liquidation heatmap reveals short-term targets at $5 and $6, where liquidity is concentrated, potentially triggering upward movement. Traders show buying interest at $4, though trading volume here is lower than at higher prices.
In conclusion, COAI targets $5 and $6 as immediate milestones if bullish sentiment prevails, ultimately aiming for $20+. While caution is advised due to bearish conditions, such declines often present strong entry opportunities.