Key Takeaways

ChainOpera AI (COAI) experienced a steep decline of more than 31% in the last 24 hours, primarily due to a shift in capital to more established AI tokens like TAO.
A recovery now hinges on COAI's ability to maintain its position above $4 and overcoming previous resistance levels.
Throughout October, COAI was one of the top-performing cryptocurrencies, yet it continues to show bearish sentiment among investors.
Despite a staggering increase of over 1848% in Q4, driven largely by gains in October, COAI has recently suffered significant losses.

What Factors Are Influencing Bearish Sentiment?

Data from Market Prophit indicates that COAI is experiencing bearish sentiment predominantly from retail investors, while institutional investors are not showing the same concerns. The recent 31% drop in value over a single day, attempting to stabilize around $4, has contributed to this negative sentiment. A slight increase of 5% in daily trading volume suggests minimal interest from larger investors.

Additionally, the rise in market capitalization for leading tokens indicates a diversion of capital from this newer narrative coin. At the time of writing, Bittensor (TAO) was leading with gains of 10%, while other major tokens like Near Protocol (NEAR) and Internet Computer Protocol (ICP) saw only modest weekly increases. Other AI assets, such as Virtual Protocol (VIRTUAL), have increased by over 61% this week, pulling investment away from COAI, which has been a strong performer in October.

Could History Repeat Itself?

Currently, COAI has managed to stay above the $4 level, having tested this critical point for the third time. Historically, maintaining this support zone has previously led to significant price surges, with past peaks approaching $30. Technically, the altcoin appears to be consolidating within a trading range of $4 to $26. A hopeful bullish trend is supported by a potential MACD crossover and a decrease in selling momentum.

Technical Analysis Chart

Source: TradingView

The momentum indicator has climbed from -13 to -2, indicating that bullish forces are gradually gaining traction, even though a full shift in market structure has not yet occurred. If past trends are any indicator, COAI could aim to revisit the $25 range, setting a target of $20 as realistic. Conversely, a drop below $4 would negate this bullish outlook and could lead to a decline toward $1.82.

Where Are the Market Orders?

The price goal remains around $20 to $25 based on current market structure, although the liquidation heatmap reveals short-term targets. The $5 and $6 price levels show significant liquidity concentration, which might instigate an upward price movement. These liquidity clusters are viewed as imminent targets.

Other buying orders appear around $4, indicating trader interest at this price, although trading activity here is presently weaker compared to orders placed above COAI's current price levels.

Market Order Visualization

Source: CoinGlass

In summary, COAI is eyeing the $5 and $6 levels as immediate targets, potentially reaching beyond $20 if bullish sentiment prevails. However, caution is warranted as the market shows bearish tendencies. Note that valuable buying opportunities frequently arise after such steep declines.