[ad_1]
AIOZ, the native token of AIOZ Network — a decentralized platform that uses a global network of nodes to distribute content — has seen a stunning 45% price increase in the past 24 hours.
This rally made AIOZ the second biggest winner of the day, behind only Dogecoin (DOGE), which increased in price by 52%. However, although trading activity is still strong, AIOZ may soon start to shed its recent profits.
AIOZ Raises Prices, But There Are Problems
AIOZ’s double-digit rally pushed its price to $0.73. At this price, the altcoin is traded on the Ichimoku cloud, which tracks the dynamics of trends and identifies potential support/resistance levels.
When asset prices stay above the cloud, it signals a strong uptrend, showing that buyers prevail and market sentiment is positive.
However, with AIOZ’s key momentum indicators showing overbought conditions, these buyers could soon face fatigue. The altcoin Relative Strength Indicator is a notable indicator of this. As of this moment, AIOZ’s RSI reaches 79.29 and continues its upward trend.
The RSI indicator measures overbought and oversold market conditions of an asset. Scale from 0 to 100; Values above 70 suggest the asset is overbought and could face a correction, while values below 30 suggest it is oversold and could be preparing for a recovery.
Compared to the RSI of 79.86, this warns that AIOZ price has been pushed too high, with a correction likely to occur as buying pressure gradually decreases.
Furthermore, AIOZ is currently trading above the upper band of the Bollinger Bands indicator, confirming an overbought condition. This indicator evaluates the asset’s volatility and identifies potential buy/sell signals. It consists of three main components: middle band, upper band and lower band.
When the price of the asset crosses the upper band, the asset is overbought and may go long. This is often a signal for traders to predict possible downward pressure, motivating them to sell to preserve profits.
AIOZ Price Forecast: Upcoming Price Drops
Once buyer fatigue sets in, AIOZ price could start to shed its recent gains. According to the Fibonacci Retracement tool, its price is expected to decline towards the $0.61 resistance level, which it just surpassed. If this level fails to hold as support, AIOZ price could fall further, to $0.49.
However, if buying pressure increases and strong demand continues, buyers could maintain the uptrend, potentially pushing the AIOZ price to its year-to-date high of $1.08.
General Bitcoin News
[ad_2]
