Deep Dive
1. Sector Rotation (Bearish Impact)
Overview: On October 30, 2025, AI-themed tokens like AIC saw sharp outflows as traders rotated into Binance-chain meme coins (e.g., BUILDon +19.5% daily). CoinGecko’s AI index dropped ~9%, reflecting broader sector weakness.
What this means: AI/meme hybrids like AIC are highly sensitive to narrative shifts. The lack of fresh catalysts (e.g., exchange listings, product launches) since August’s buyback campaigns left AIC vulnerable to profit-taking.
What to look out for: A sustained rebound in CoinGecko’s AI index or renewed buyback announcements from the AIC team.
2. Technical Breakdown (Bearish Momentum)
Overview: AIC broke below the 78.6% Fibonacci retracement level ($0.1242) and trades 53% below its 30-day SMA ($0.14181). The RSI-7 at 27.66 indicates oversold conditions but no bullish divergence yet.
What this means: Technical traders may interpret this as a sign of continued bearish momentum. A close above $0.1242 (previous support) is needed to signal stabilization.
What to look out for: A reclaim of $0.1242 or a bullish RSI divergence to confirm a trend reversal.
3. Fading Buyback Momentum (Mixed Impact)
Overview: AIC executed a $1.5M buyback campaign in August, burning 8M tokens to boost scarcity. However, no new burns have been announced since September, reducing upward pressure.
What this means: While past buybacks provided short-term lifts, the absence of recent action has weakened a key bullish narrative. Investors may demand proof of renewed token burns to regain confidence.
Conclusion
AIC’s drop stems from a trifecta of macro risk aversion, AI-sector outflows, and technical breakdowns. While oversold conditions could invite contrarian buys, the token needs fresh catalysts (e.g., burns, partnerships) to reverse its bearish momentum.
Key watch: Can AIC hold its June 2025 low of $0.10225, or will breaking this level trigger another leg down?