Sahara AI [SAHARA] was up around 21% at press time, as the AI token attempted to recover following its early sharp price crash. The daily trading volume has increased by 342%, surpassing $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 was fueled normal trading dynamics and broader crypto market structure. As per a tweet on X, Sahara AI outlined the clearest step was with their tokenomics, that is, extending lockups periods.
Moreover, investor unlocks would be pushed back by three months while founder, core team, and advisor unlocks would be postponed for six months. This was to ensure the circulating supply remained intact at least in the short term.
Additionally, they were planning to introduce a buyback program for their long-term treasury strategy, which would be funded by their revenue. However, the team dismissed token burns and do not plan to introduced one with the supply fixed.
In response, both whale and retail sentiment turned bullish with strong signal strengths.
SAHARA breaches short-term trendline but…
SAHARA broke above a descending trendline on the hourly chart, but its price was pulling back for a retest.
At the time of writing, the Bull Bear Power indicator showed buyers were in control while CVD affirmed the buying pressure. Notably, over 29 million SAHARA were bought after the recent tweet.
However, on the daily chart SAHARA was trading below the low created by the 67% crash. This is after invalidating the bullish reversal pattern on the retest of the neckline at $0.03.
The altcoin remains below its June low, trading near $0.01315. To reclaim its pre‑crash market cap, SAHARA must hold the neckline as support.
Otherwise, the altcoin may continue declining as its market structure is still bearish.
Upcoming token unlock and its impact on price
While the daily surge may suggest potential recovery, there is still impending selling pressure from the upcoming token unlocks.
As per Tokenomist AI, 30.10% of the released supply would hit the market in less than three days. This was equivalent 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 more than 21% in 24 hours after announcing a clear long term commitment plan for its ecosystem.
- SAHARA price action was showing signs of recovery but upcoming token unlocks may present undue sell pressure.
