Deep Dive
1. Technical Rejection & Oversold Signals (Bearish Impact)
Overview: AB failed to hold above the critical $0.0085 resistance (November 20 high), triggering a 16% pullback over seven days. The 7-day RSI at 19.2 signals extreme oversold conditions but lacks bullish reversal confirmation.
What this means: While oversold RSI readings often precede bounces, AB’s MACD histogram (-0.00011986) shows bearish momentum accelerating. The price sits below all key moving averages (7-day SMA: $0.0059), indicating sustained selling pressure.
What to watch: A close above the 7-day SMA ($0.0059) could signal short-term relief, while a break below $0.00508 (November 30 low) may extend declines.
2. Profit-Taking Post-Rally (Mixed Impact)
Overview: AB surged 40% from November 12–20 after the WLFI partnership and USD1 stablecoin launch, but bullish momentum faded as volume dropped 20.7% in 24h.
What this means: Thin liquidity at higher prices ($0.008–$0.0085) allowed sellers to dominate, with the 24h volume/MC ratio at 3% signaling low conviction among buyers. The rally lacked fundamental catalysts beyond initial partnership hype.
3. Token Unlock Overhang (Bearish Impact)
Overview: 87.63B AB tokens (89% of circulating supply) remain unlocked, with full vesting ending February 2026. Only 12% of total supply is locked.
What this means: While gradual unlocks prevent sudden dumps, the high float creates persistent sell-pressure risks – particularly during weak technical setups. This dynamic likely amplified the recent dip.
Conclusion
AB’s dip reflects a combination of exhausted bullish momentum, technical breakdowns, and structural supply risks – though oversold conditions could fuel a tactical rebound if Bitcoin dominance eases. Key watch: Can AB hold the $0.00508 support level, or will Bitcoin’s 59% dominance keep altcoins subdued?