Here’s why ai16Z surged over 35% today

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The native token of the agent-focused AI platform ai16z experienced a surge following the disclosure by its founder regarding the impending upgrade to its AI system, Eliza.

On January 14th, AI16Z saw a surge of 35%, reaching a peak of $1.27, as reported by crypto.news. This boosted its market capitalization from $1 billion to approximately $1.4 billion. The price increase was driven by increased trading activity, causing the daily volume to swell by 33% to $646 million. Furthermore, AI16Z was a hot topic on CoinGecko as well.

As I analyzed the cryptocurrency market trends, I noticed that the rise in AI16Z’s price was not merely an isolated event. It aligned perfectly with the broader market’s recovery from a recent slump, providing an additional boost to AI16Z’s price dynamics.

AI16Z experienced a surge following the announcement made by its founder, Shaw, concerning the upcoming Version 2 of Eliza – the operating system that drives the Agentic AI platform Eliza.

The upcoming update is said to bring an array of cutting-edge capabilities, such as self-governing functionality for smooth performance, a simplified wallet system that consolidates assets for easy handling, and a comprehensive plugin library designed to accommodate various connections.

The rally grew even stronger following the publication of the official technical whitepaper for Eliza on January 14th.

Currently, there’s growing interest among derivative traders for the AI-powered meme coin. As per CoinGlass data, the open interest in the AI16Z futures market has climbed by 10% within the last day, reaching $193.9 million at this moment.

Investors who specialize in large-scale investments (often referred to as “whales”) have started paying attention to AI16Z due to the growing buzz around AI Agentic. As per a post on X by Lookonchain, one such whale recently withdrew 5.64 million AI16Z tokens, worth approximately $6.37 million, from Gate.io. This move has increased their total holdings of AI16Z tokens to 15.95 million, currently valued at around $17.86 million.

Meanwhile, smart money investors have reportedly started accumulating the token as well. See below.

As an analyst, I observed that the following tokens experienced the highest inflows from Smart Money within the past hour:

* Fartcoin – $242,000
* ai16z – $196,000
* MACK – $50,000
* UFD – $31,000
* LLM – $25,000

Data sourced from @nansen_ai.

— ElonMoney (@0xelonmoney) January 14, 2025

Typically, crypto investors see these accumulation patterns as a positive sign, particularly for cryptocurrencies that have smaller total market values, which they often interpret as a bullish indicator.

AI16Z technicals look bullish

Technical indicators point to a potential extension of the current rally.

16Z’s price had surpassed its 50-day Moving Average, indicating that the bulls were still dominating the market. This was further supported by the Average Directional Line indicator, which indicated a value of 40. Generally, values above 25 suggest a robust trend strength.

Additionally, the bars on the Moving Average Convergence Divergence (MACD) were shrinking, a sign that suggests an upcoming bullish reversal. At the same time, the Relative Strength Index (RSI) stood at 47, showing there is still ample potential for the altcoin’s price to climb before reaching the overbought level.

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2025-01-14 16:46