Sahara AI (SAHARA) was up around 21% at press time, as the AI token attempted to recover from its sharp price drop. Daily trading volume increased by 342%, exceeding $124 million.
Here’s what caused this price surge after two weeks of decline.
Sahara AI announces roadmap after 60% crash
Sahara AI experienced a 60% crash two weeks ago and the team denied any involvement. The sharp decline fueled normal trading dynamics and the broader structure of the crypto market. According to a tweet on
Additionally, investor releases would be pushed back by three months, while founder, core team, and advisor releases would be delayed by six months. This was to ensure that the circulating supply remained intact at least in the short term.
Additionally, they planned to introduce a buyback program for their long-term cash flow strategy, which would be funded by their revenue. However, the team has rejected token burns and does not plan to introduce one with the fixed supply.
In response, whale and retail sentiment turned bullish with strong strong signals.
SAHARA crosses the short-term trend line but…
SAHARA broke above a descending trendline on the hourly chart, but its price was retreating for a retest.
At the time of writing, the Bull Bear Power indicator showed buyers in control while CVD affirmed buying pressure. Notably, over 29 million SAHARA were purchased after the recent tweet.
However, on the daily chart, SAHARA was trading below the low created by the crash by 67%. This is after invalidating the bullish reversal trend when retesting the neckline at $0.03.
The altcoin remains below its June low, trading near $0.01315. To regain its pre-crash market capitalization, SAHARA must maintain the neckline as support.
Otherwise, the altcoin could continue to fall as its market structure is still bearish.
Upcoming Token Unlock and Its Impact on Price
Although the daily rise may suggest a potential recovery, there is still looming selling pressure due to the upcoming token unlock.
According to Tokenomist AI, 30.10% of the released supply would hit the market in less than three days. This equates to 1.03 billion SAHARA tokens worth $14.75 million.
Overall, SAHARA is in a make-or-break situation as it has shown signs of recovery but continues to face selling pressure.
Final summary
- SAHARA AI rose over 21% in 24 hours after announcing a clear long-term commitment plan for its ecosystem.
- SAHARA’s price action was showing signs of recovery, but the upcoming token unlocking could present excessive selling pressure.
