AI16Z Plummets 35% in Four Days – Traders Brace for the Next Shoe to Drop

Another ’unstoppable’ AI crypto darling eats dust as AI16Z’s token nosedives—proving once again that in crypto, even the smartest algorithms can’t outrun dumb market panic.

Blood in the water: The freefall triggers stop-loss cascades across leveraged positions, with liquidations piling up faster than a DeFi protocol’s excuse list.

What’s next? Technical analysts eye the $2.50 level as make-or-break support... while VC bagholders quietly update their LinkedIn bios to ’Web3 futurist’.

Bearish sentiment dominates

With the continuous price decline, AI16Z’s Long/Short Ratio dropped to 0.7718, the lowest since April 2025, indicating a strong bearish sentiment among traders.

A ratio below one suggests that traders are heavily betting on the bearish side.

Specifically, 56.44% of traders held short positions, while only 43.56% remained long, marking a decisive lean toward further downside.

Source: CoinGlass

The Exchange Liquidation Map tells the same story.

On-chain metrics revealed that traders were over-leveraged at $0.264 on the lower side (support) and at $0.286 on the upper side, which acted as resistance for the AI token.

Meanwhile, around these levels, traders have built $604.70K worth of long positions and $1.11 million worth of short positions.

Source: CoinGlass

Traders’ bets show that bears dominate the asset, believing ai16z won’t reach $0.286 soon.

Technical chart shows breakdown from key range

According to AMBCrypto’s technical analysis, ai16z appears bearish and is heading toward the next support level.

The altcoin’s downside momentum began at $0.40, a strong resistance level that has consistently acted as selling pressure.

Whenever the price reaches this level, it tends to trigger a downward rally, and the same has happened this time.

Source: TradingView

Historical price action shows this pattern often leads to another 20% decline. Without renewed interest, momentum may keep sliding, potentially reaching the $0.2175 level.

Amid the ongoing downside momentum, a crypto analyst recently made a post on X (formerly Twitter), noting that AI16Z’s bull run won’t resume unless it reclaims the $0.39 zone.

For now, however, technicals, positioning, and sentiment all point in one direction—down.