Venice Token price has slumped over the past few weeks, down from a high of $21.4 earlier in June to the current $13.72. VVV has slumped by 36% from its year-to-date high, mirroring the performance of other AI tokens such as Worldcoin (WLD) and NEAR Protocol (NEAR).
Venice Token Price Has Slumped Amid Profit-Taking and AI Woes
Venice AI token has slipped in the past few weeks, erasing some of the gains made earlier this year. This retreat came as traders began booking profits after it soared over 1,500% from its December low last year.
The token has also slumped amid the ongoing challenges in the artificial intelligence (AI) industry. For example, the much-anticipated SpaceX IPO has largely flopped. After initially soaring, the stock has slumped and erased most of its gains, wiping out over $800 billion in value.
The VVV price has also slumped after reports that OpenAI, the poster child of the AI business, was considering delaying its IPO. This is happening amid the ongoing slowdown and cash burn.
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At the same time, Venice Token’s burn rate has started to slow this month. The network burned tokens worth over $234k in June, down from last month’s $234k. Before that, the burn rate rose from April’s $146k to $234k. A falling burn rate could indicate that usage is slowing, since the network typically burns its fees.
Meanwhile, data show that futures open interest has been in a strong downward trend over the past few months. The interest soared from a peak of $140 million on May 25 to the current $64.4 million. That is a sign that demand in the futures market continues falling. Volume in the spot market has also dropped to $27.1 million from the year-to-date high of $805 million.
VVV Price Technical Analysis
The daily chart shows that the VVV price has slumped from a high of $21.41 on June 3 to its current level of $13.62. It has been stuck at the 38.2% Fibonacci Retracement level.
The coin has slumped below the 50-day Exponential Moving Average (EMA), a sign that bears are in control for now. It is also forming a head-and-shoulders pattern.
The Venice AI token has moved below the Strong, Pivot, and Reverse levels of the Murrey Math Lines tool. Therefore, the path of the least resistance is downwards, potentially to the psychological level of $10, which is about 26% below the current level.
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