ChainOpera AI Sees 25% Surge: Is COAI's Growth Sustainable?
Key Highlights
What's Behind COAI's Rise?
ChainOpera AI's value jumped 25% due to short liquidations, BSC strength, and new listings on major exchanges.
Future Price Levels
For COAI to maintain its upward trend, it must surpass the $7.91 mark; otherwise, bearish tendencies may persist.
ChainOpera AI (COAI) surged by over 25%, outperforming the market's downward trend of 3% in the past day. Despite this rally, COAI remains 85% below its all-time high of nearly $45. Currently, COAI's market cap stands at $1.29 billion, with an additional $1.35 billion in potential capitalization. Daily trading volume fell 50%, totaling approximately $75 million.
Factors Driving the Surge
The price hike was fueled by cascading short liquidations, exchange listings, and the robustness of the BNB Smart Chain (BSC). CoinGlass data showed significant short liquidations around the $7 mark, prompting buying pressure. Approximately $11.5 million in COAI was liquidated, resulting in a price dip below this level. Buy orders near $5 indicated bullish momentum.
COAI's listings on Bitget and Gate.io expanded its reach, further boosting its value. The token remains a top performer on BSC, which has flourished since August.
Can COAI Maintain Its Strength?
The 4-hour chart suggests a slight recovery after a downward trend, with COAI trading around $6.5. Despite this recovery, indicators show weakness. The Bollinger Bands, narrowing between $2.41 and $13.41, indicate reduced volatility, suggesting potential consolidation if $7.91 resists further gains. The Momentum indicator shows a weak bullish drive at -0.1445, while the Money Flow Index at 30.82 signals oversold conditions.
On-Balance Volume (OBV) at -472.526M reflects persistent selling pressure, despite slight improvements. COAI is approaching the $7.91 resistance, but more evidence is needed to confirm a bullish reversal.
Risks to the Rally
Profit-taking of around 53.75 million COAI, about 5% of the circulating supply, has contributed to the price drop from above $7. Analysis of token holder distribution shows that the top 100 addresses control over 94% of tokens, making COAI's price susceptible to manipulation.
Despite this, only 0.05% of the circulating supply was acquired, indicating limited interest among traders. Caution is advised amid this price action.