- The Venice Token price has moved sideways in the past few weeks.
- The team announced that it will boost the token burn rate.
- There are signs that the token will have a strong bearish breakdown as long as it is below the resistance at $9.9733.
The Venice Token price pulled back this week, moving from a high of $9.9733 to the current $9 as the recent bull run stalled. So, will the VVV tokens rally or crash after boosting the burn rate?
Venice Will Boost the VVV Token Burn
Venice, the fast-growing artificial intelligence (AI) network, is planning to boost the token’s value by increasing its token burn. In a statement on Monday, the developers noted that they will burn $2 in VVV for each new pro subscription, up from $1 previously.
The network will burn $5 and $10 for each Pro+ subscription and $10 for each Max subscription. According to its website, a Pro version costs $18 a month, while a Pro Plus and Max cost $68 and $200 a month, respectively.
This announcement came as the VVV burn rate has continued rising this year. Data shows that the network has burned tokens worth over $139k this month after burning $113k last month. The total supply burned is 42.40%.
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The Venice Token price has also reacted to the ongoing growth in artificial intelligence (AI), with top companies like OpenAI and Anthropic seeing a surge in valuations.
A recent report suggested that Anthropic’s valuation has soared to over $1 trillion, while SpaceX is considering making a $60 billion bid for Cursor. NVIDIA, the biggest player in the AI industry, has soared to a record high, with its market capitalization hitting $5.2 trillion.
More data show that the VVV futures open interest has jumped over the past few months, rising from a low of $5.8 million in February to over $63 million today, a sign that demand is rising.
Still, the main risk for the Venice Token is that the bullish momentum may fade in the coming days as investors start booking profits. At its peak this month, the token was up by over 1,000% from its lowest level this year.
Venice Token Price Prediction: Technical Analysis
The daily timeframe chart shows that the VVV price has soared from a low of $0.9378 in December last year to a high of $9.9733 on April 14. It has recently pulled back and is now trading at $8.96.
The coin has remained above the 50-day and 100-day Exponential Moving Averages (EMA). It also moved above the important support level at $8.4855, its highest point on March 2nd.
Still, there is a risk that the coin is entering the distribution phase of Wyckoff Theory, where assets retreat.
Also, the token has remained well above its 50-day and 100-day Exponential Moving Averages (EMAs). That is a sign that the coin may undergo a phenomenon known as mean reversion.
The coin has also formed a small double-top pattern at $9.9733. Therefore, there is a risk of a major reversal in the near term. A bearish breakdown will become invalid if it moves above the year-to-date high of $9.97.
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