AI Agent Token AI16Z has emerged as the market’s top gainer over the past 24 hours, experiencing a 34% surge. This comes on the heels of President Donald Trump’s announcement of a $500 billion investment in private AI infrastructure.
With the strengthening demand for the altcoin, AI16Z could revisit its all-time high in the near term.
Trump’s $500 Billion Project Fuels AI Token Rally
At a White House event on Tuesday, President Donald Trump announced a $500 billion joint venture to advance AI infrastructure in the US. Partnering with Oracle, SoftBank, and OpenAI, the venture is named Stargate.
The companies will initially invest $100 billion, with plans to increase funding to $500 billion over the next four years. They will focus on building massive data centers and infrastructure to support AI technology.
This news has led to a spike in the values of AI-based crypto assets, with AI16Z taking the lead. At press time, the token trades at $1.20, noting a 35% price hike over the past 24 hours.
AI16Z’s Demand Rockets
An assessment of AI16Z’s key momentum indicators on a daily chart reveals the spike in demand for the altcoin. For example, its Relative Strength Index (RSI) is an upward trend, attempting to break above the 50-center line at the time of writing.
An asset’s RSI tracks its overbought and oversold market conditions. When poised to break above 50, it indicates a potential shift from bearish to bullish momentum in the asset’s price movement. This suggests that buying pressure is increasing, and the asset may be entering an uptrend.
AI16Z’s funding rate has remained positive, reflecting strong bullish sentiment. At press time, it stands at 0.011%, highlighting demand for long positions in the futures market.
The funding rate represents periodic payments between long and short traders in perpetual futures contracts. This mechanism ensures contract prices align with the underlying asset. A positive funding rate indicates longs are paying shorts, a signal that traders are willing to pay a premium to hold long positions, showcasing market optimism.
AI16Z Price Prediction: ATH in Sight
AI16Z could continue its rally if the bullish momentum persists. In such a case, its price might retest its all-time high of $2.50, last achieved on January 2.
Conversely, a shift to bearish market sentiment would invalidate the bullish outlook, potentially driving AI16Z’s value down to $0.68.
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