President Trump’s Stargate initiative with Oracle, SoftBank, and OpenAI triggers AI token rally, with AI16Z leading gains at $1.12, up 16.82%.
Soon after the newly elected US President Donald Trump revealed $500 billion in private AI infrastructure space, AI agent token AI16Z [NC] price shot up by 35% in a day jumping to $1.25, with daily trading volume shooting by 30% to more than $350 million.
While addressing reports at the White House on Tuesday, President Donald Trump talked about boosting AI infrastructure in America. Trump will be collaborating with Oracle, SoftBank, and OpenAI, for an initiative, named Stargate, which will launch with an initial investment of $100 billion. Over the next four years, they would scale this funding further to $500 billion.
Following this announcement, AI-based crypto coins witnessed a sharp surge, with AI16Z leading the pack. As of press time, the token is currently trading 16.82% up at $1.12.
AI16Z Price Jumps amid Strong Demand
An analysis of AI16Z’s daily chart reveals a surge in demand for the altcoin, as indicated by key momentum metrics. Notably, the Relative Strength Indicator (RSI) is trending upwards while approaching the critical 50-center line at the time of writing.
The RSI measures market conditions to determine whether an asset is overbought or oversold. A move above 50 signals a potential transition from bearish to bullish momentum. This reflects increased buying pressure while suggesting that the asset may be entering an uptrend.
Source: TradingView
On the other hand, AI16Z’s funding rate has remained positive, reflecting strong bullish sentiment. As of press time, the funding rate stands at 0.011%, while highlighting strong demand for long positions in the futures market.
The funding rate reflects periodic payments exchanged between long and short traders in perpetual futures contracts, designed to keep contract prices aligned with the underlying asset. A positive funding rate means long traders are paying shorts, indicating a willingness to pay a premium to maintain long positions – a clear sign of market optimism.
Source: Coinglass
Will the AI Agent Token Hit an All-Time High?
Following its all-time high of $2.5, the Ai16z price tanked more than 50% before resuming the upward trajectory once again. If bullish momentum continues, AI16Z could extend its rally, potentially retesting its all-time high of $2.50, last reached on January 2.
Source: TradingView
However, a shift toward bearish market sentiment could undermine this optimistic outlook, possibly pushing AI16Z’s price down to $0.68
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