USD.AI [CHIP] token prices are up by 29.1% in the past 24 hours, bringing the token’s market cap to $135.6 million. This is the highest level achieved since May, and social sentiment suggested it could be just the start of a bullish run.
Why is CHIP up today?
In recent weeks, capital rotation into altcoins has seen the altcoins grow at a comparable pace to Bitcoin [BTC]. Individual altcoins have made double- and even triple-digit percentage gains since mid-August.
The “value accrual ontology” was also helping boost social sentiment around USD.AI, the permissionless lending protocol designed to finance AI infrastructure. David Choi, co-founder and CEO of Permian Labs and creator of USD.AI, talked about a Copernican Model for the USD.AI ecosystem with CHIP at the centre, much like HYPE is at the centre for the Hyperliquid/Tradexyz case.
Essentially, instead of the buyback-and-burn model that crypto protocols generally go for, an operating company could buy and hold CHIP, increasing its share, a model he termed as being closer to a “commit-and-compound” model.
CHIP maintains a bullish trend; here are the next targets
The $0.044 swing high from June was part of the downtrend, the swing high that had anchored the trend in place. This resistance was breached in early September.
A pullback below $0.040 by mid-September was followed by another move past the then-latest swing high at $0.0625. The swing structure has been established and maintained.
At the time of writing, the CMF was at +0.16 to signal strong capital inflows. The DMI showed a steady uptrend in progress.
The CHIP market conditions were not overextended. The DeFi token can climb past $0.0717, the current local highs. However, in case of a pullback, the $0.043-$0.053 area would be an interesting area for long-term buyers.
Furthermore, the fair value gap (white box) at $0.052-$0.061 was a demand zone to keep an eye on. There is a chance for a bullish reaction from $0.056, the imbalance’s midpoint.
To the north, the $0.080 and $0.112 levels from April would be the next price targets on CHIP’s uptrend.
Final Summary
- The value accrual ontology creator David Choi, in a post on X, helped fuel bullish market sentiment around USD.AI.
- In a relatively quiet crypto market, CHIP has made steady gains in recent days, maintaining its uptrend.