Sahara AI [SAHARA] was up about 21% at the time of writing, as the AI token tried to recover from the early sharp price crash. Daily trading volume has increased by 342% and exceeds $124 million.
This is the cause of this price increase after two weeks of decline.
Sahara AI Announces Roadmap After 60% Crash
Sahara AI experienced a 60% crash two weeks ago and the team denied any involvement. The sharp decline was fueled by normal trading dynamics and the broader crypto market structure. According to one tweet at XSahara AI outlined that the clearest move was with their tokenomics, i.e. extending the lock-up periods.
Additionally, the unlocks for investors would be delayed by three months, while the unlocks for founders, core teams and advisors would be delayed by six months. This was to ensure that the circulating supply remained intact at least in the short term.
Moreover, they planned to introduce a buyback program for their long-term government bond strategy, which would be financed with their revenues. However, the team has rejected token burns and has no plans to introduce one while the stock is resolved.
In response, both whale and retail sentiment turned bullish with strong signal strengths.
SAHARA Crosses Short-Term Trendline, But…
SAHARA broke above a descending trendline on the hourly chart, but the price retreated for another test.
At the time of writing, the Bull Bear Power indicator showed buyers in control, while CVD confirmed the buying pressure. It is striking that more than 29 million SAHARA were purchased after the recent tweet.
However, on the daily chart, SAHARA was trading below the crash low of 67%. This is after invalidating the bullish reversal pattern on the retest of the neckline at $0.03.
The altcoin remains below its June low and is trading around $0.01315. To regain pre-crash market cap, SAHARA needs to hold the neckline as support.
Otherwise, the altcoin could continue to fall as the market structure is still bearish.
Upcoming token unlock and its impact on price
While the daily increase may indicate a possible recovery, there is still looming selling pressure due to the upcoming token unlocks.
According to Tokenomist AI, 30.10% of the released supply would hit the market in less than three days. This equated to 1.03 billion SAHARA tokens worth $14.75 million.
Overall, SAHARA is in a make-or-break situation as it shows signs of recovery but still faces selling pressure.
Final summary
- SAHARA AI rose more than 21% in 24 hours after announcing a clear long-term plan for its ecosystem.
- SAHARA’s price action showed signs of recovery, but upcoming token unlocks could create unnecessary selling pressure.