A whale acquired 5.57 million AI16Z [AI16Z] tokens through Jupiter aggregators for $2 million, attracting widespread attention from the market.

According to a recent report released by Coinglass, the deal has sparked interest as the cryptocurrency market continues to show complex technology and market sentiment signals.

As of this writing, the AI16Z trades at $0.3455, down 10.38% in the past 24 hours.

Such large-scale trading often inspires speculation among traders. However, combined with current price trends and broader derivatives data, the market's short-term outlook still seems to be unclear.

An in-depth analysis of the derivatives market showed that open interest (OI) fell 13.88% to $117.45 million, indicating a significant reduction in traders' positions. The decline in OI may be seen as a sign of a decline in trader confidence or increased risk aversion following recent market volatility.

Furthermore, we observe that leverage is also declining, which is usually a sign of the upcoming trend reset. It is important to note, however, that a sharp drop in OI may indicate uncertainty in the signal rather than a firm belief in a particular direction in the absence of price recovery.

Only when we see new positions increase simultaneously with the growing number can the market get rid of the current volatile trading range and continue its trend. For now, buyers appear to be working hard to push prices above key resistance levels.

In the past 24 hours, the liquidation of long positions reached US$988,100, while the liquidation of short positions was only US$33,700. This difference shows that as the market changes, the bulls are under greater pressure.

Despite major clearings, cryptocurrencies have not established higher lows or recovered from previous support levels. Among the major exchanges, Binance and Bybit make up the majority of such clearings, which may indicate that institutions are reducing their positions.

This total imbalance in the clearing map depicts the bearish outlook, especially if the price fails to stabilize and shows obvious signs of reversal.

Source: Xiaodian

In other news, Coinglass' clearing map shows that the thick short leverage ratio is below $0.339, accumulating above $0.36, and at the time of the press release, it is located in the key decision area.

While short positions below $0.34 were triggered, prices failed to maintain these levels, ultimately suggesting that buyers might not have enough power to combat short pressure.

In addition, the increase in short positions leverage ratios of BYBIT and OKX indicates that traders expect further downward pressure. So, unless the Bulls decisively break through $0.36, short pressure seems to be able to regain control.

Source: Xiaodian

The technical structure of AI16Z shows that cryptocurrencies rebounded from Fibonacci level of 0.382 ($0.3430), but the response remains weak. The resistance of 0.236 fib ($0.3678) is strong, rejecting an upward attempt.

At press time, the Relative Strength Index (RSI) was 51.23, showing neutral momentum, but there was no significant bullish difference. Additionally, failed attempts to recover $0.36 suggest the Bulls lacked follow-up.

So if the quantity does not return, the price may continue to decline, or further drop to $0.3229 (0.5 fib) and $0.3029 (0.618 FIB) while the RSI drifts below 50.

Source: TradingView

The continued decline in public interest, especially during the price rebound, is a bearish signal that there is a lack of follow-up and the risk is increasing.

In addition, the major imbalance in liquidation, with a long position of $988,100 and a short position of $33,700, indicating that the price movement surprised the Bulls.

There is no liquidation at all in the downward trend, and a large liquidation at the binary exchange point, indicating that institutional investors have largely held liquidated long positions.

Finally, neutral RSI values ??and failed attempts highlight the FIB level, which highlights the possible continuation of the lack of buying pressure and the potential downtrend.

Despite the purchase of $2 million, the AI16Z has not maintained its critical level. Long warehouse liquidation dominates, OI is declining, and RSI means momentum is weakening.

Unless the Bulls recover $0.3678 and favor the shift volume in their favor, the bearish signal indicates a sustained downside risk.

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

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