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AI16Z Price Approaches Key Resistance — New Bullish Trend Awaits Breakout

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • AI16Z has completed an ABC corrective structure and is now attempting an upward impulsive wave. Key resistance is at $1.524, and immediate support is at $1.237.
  • A potential Wave (iii) targets $1.8–$2.0, contingent on holding support levels between $1.26 and $1.19; failure to maintain these could trigger a deeper pullback.
  • RSI indicates moderate momentum without overbought or oversold conditions, with critical resistance at $1.524 and $1.878 and support clustering around $1.237 and $1.12.

The recent price action of AI16Z reveals a complex yet promising Elliott Wave structure, hinting at a potential trend reversal.

The 4-hour chart displays the conclusion of a corrective wave cycle, while the 1-hour chart suggests the initiation of a fresh impulsive wave.

With Fibonacci retracement levels providing critical support and resistance zones, the upcoming sessions could offer decisive clarity.

AI16Z Price Analysis 

AI16Z reached an all-time high of $2.46 on Jan 2. However, as its corrective stage began, a downturn followed, leading to a low of $0.91 on Jan 13.

It is in the recovery phase after completing a corrective ABC structure in a descending channel.

The recent rise led to a high of $1.48, an integration with the descending channel resistance.

Notably, the price rebounded sharply from the $1.0 region, which aligns with the 0.618 Fibonacci retracement level, a critical support zone.

AI16Z price analysis
AI16ZUSD at descending channel resistance | Credit: Nikola Lazic/Tradingview 

The current price structure indicates that the asset attempts to establish a higher low, a precursor to initiating a new impulsive wave.

The 0.382 Fibonacci retracement at $1.52 acts as immediate resistance. A close above this level would confirm a bullish continuation, potentially targeting the next resistance cluster near $1.87 (0.236 retracements).

The Relative Strength Index (RSI) on the 4-hour chart shows improving momentum but has not yet reached overbought territory.

This suggests room for further upward movement if key resistances are breached. However, failure to sustain above $1.237 (0.5 retracement) could trigger a retest of the $1.0 support level.

AI16Z Price Prediction 

On the lower time frame, the price action reveals the early stages of an impulsive five-wave structure.

The completion of Wave (i) near $1.476 is followed by a potential Wave (ii) correction, testing the 0.5–0.618 Fibonacci retracement levels ($1.258–$1.197).

If this zone holds, Wave (iii) could extend toward $1.8–$2.0, aligning with Fibonacci extension targets.

AI16Z price prediction
AI16ZUSD retracement likely | Credit: Nikola Lazic/Tradingview 

The corrective pullback in Wave (ii) aligns with declining RSI momentum, providing a healthy reset for the next potential upward leg.

Wave (iii) is typically the strongest in an impulsive structure and could break above the descending channel resistance, signaling sustained bullish momentum.

Fibonacci projections place the Wave (iii) target near the 1.618 extension at $2.0, with intermediate resistance at $1.8.

In a bearish scenario, a breakdown below $1.197 would invalidate the impulsive wave structure, exposing the price to further declines toward the $1.12 region.

Key Levels to Watch

  • Immediate Resistance: $1.524 (0.382 Fibonacci retracement).
  • Secondary Resistance: $1.878 (0.236 Fibonacci retracement).
  • Immediate Support: $1.237 (0.5 Fibonacci retracement).
  • Critical Support: $1.197–$1.12 (0.618 Fibonacci retracement and prior structural lows).
  • Bullish Target for Wave (iii): $1.8–$2.0 if upward momentum sustains.
  • Invalidation Zone: Below $1.0, signaling deeper corrective action.
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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