- While profit-taking could lead to a small price decline in the short term, the broader trend points to a potential rally.
- Chart analysis indicates that the asset is likely to test the support levels before resuming its upward trajectory.
AIOZ has been among the best performing crypto assets lately, recording a remarkable 178.45% price increase within one month. Market activity remains robust, indicating that bullish sentiment continues.
In the last 24 hours alone, the asset is up 16.06%, further reinforcing its strong performance.
According to AMBCrypto’s analysis, while current positive returns are notable, a slight correction could precede a more pronounced rebound, paving the way for a new potential high.
Profit taking could temporarily slow AIOZ’s momentum
Spot traders have started taking profits on AIOZ following the impressive market performance. The asset’s market cap rose 16.08% to $1.34 billion, while trading volume increased by $166.60 million after a 71.13% gain per CoinMarketCap.
Profit taking occurs when traders sell some or all of their assets to secure profits after a price increase. This behavior typically becomes stronger after a sharp rally, as seen with AIOZ.
An indicator of profit taking is an increase in Exchange Netflow, which involves transferring significant amounts of assets from wallets to exchanges in preparation for sales. At the time of writing, more than $1 million worth of AIOZ has been moved to exchanges in the last 24 hours.
Source: Coinglass
Such actions, which increase the supply of assets, often result in price declines unless offset by rising demand. According to AMBCrypto, if this trend continues, AIOZ could test its next support level.
AIOZ is testing lower support levels
The recent selling pressure may push the AIOZ lower, forcing the asset to find a support level where buying interest can build before resuming its upward trajectory.
Analysis of AIOZ’s chart with the Fibonacci retracement levels suggests that the asset could fall to the 0.9472 zone, where enough buy orders may exist to fuel a recovery.
If this support does not hold, AIOZ could regain 50% of its recent gains, potentially falling further to the red Fibonacci line at 0.8297 before an upward move is likely.
Source: Tradingview
If AIOZ recovers from any of these levels, it could pave the way for a new all-time high in the near future.
The strong bullish sentiment continues
Data from Coinglass shows that Open Interest, which tracks the total number of unsettled derivatives contracts in the market, has favored long traders.
This trend is evident in the recent increase in Open Interest, which rose 13.07% to $9.41 million over the past 24 hours.
Source: Coinglass
The number of long contracts also continues to rise. At the time of writing, the Long-to-Short ratio has reached 1.0028. When this ratio remains above 1, it indicates that long traders have greater influence on the market, potentially pushing prices higher.