Recently, the cryptocurrency market experienced a sharp pullback, affecting most major tokens. Bitcoin and Ethereum saw a decrease in prices. This also impacted AI16Z, which demonstrated significant decline.
Cryptocurrency Market Pullback
Amid the overall downturn, Bitcoin (BTC) briefly fell to around $104,000, while Ethereum (ETH) slipped to $2,600, losing their recent highs. These changes also affected several AI-related tokens, including AI16Z, which recorded a weekly decline of over 27%.
Harmonic Structure of AI16Z
On the 4-hour chart, AI16Z appears to be forming a **Bearish Crab** harmonic pattern. This well-known technical setup typically predicts a potential bullish rally towards a reversal zone (point D) before a larger correction. The pattern began forming from point X near $0.3272 on May 27 with a sharp decline to point A around $0.1941 on May 31.
Future of AI16Z
If the pattern continues to unfold, the target for the final point D is around $0.4094, which corresponds to the 1.618 Fibonacci extension of the XA leg. This suggests a potential upside of nearly 91% from the current price around $0.213. However, for this bullish scenario to remain valid, AI16Z must hold the support zone around $0.20 — point C in the pattern.
The cryptocurrency market has shown considerable volatility, with AI16Z's performance being a focal point for potential bullish trends. However, future movements will depend on the token's ability to maintain key support levels.
