Native utility and governance token of the private generative AI platform Venice Token [VVV] saw a minor resurgence on Friday, the 17th of July. It rallied by 20.1%, from a 10-week low of $9.81, to reach a local high of $11.79. At the time of writing, the token continued to push higher with momentum.
The trading volume had also been remarkably high on Friday. The VVV/USDT spot pair on Bybit witnessed a volume expansion of just over fourfold between Thursday and Friday.
Jon Venice, Head of Strategy for Venice, announced that two key tokenomics updates were going live on the 17th of July. Firstly, 5% of the money users spend on API credits for the generative AI would go directly towards a buy-and-burn program.
Secondly, the supply target of DIEM, which can be held and staked to provide $1 of daily, renewing AI compute credit, was raised from 38,000 to 40,000. The token is only minted by locking VVV.
This announcement likely spurred the altcoin’s resurgence from the psychological $10 level. How high can this bounce go?
Venice Token maintains its longer-term uptrend
Austin Barack, founder and managing partner at crypto investment fund Relayer Capital, explained the bullish case for VVV.
The thesis was simple. VVV has tested the $10 support zone, which was where the previous rally in late April was initiated. If a burn-related catalyst works similarly once again, VVV could run up to $23 next.
From a structural point of view, the price action remained firmly bullish on the 1-day timeframe. The swing low at $5.05 was not yet violated. Venice Token has reacted positively from the golden pocket between the 61.8%-78.6% Fibonacci retracement levels.
The MACD and CMF were severely bearish as a result of the steady decline the altcoin faced since late May.
An influx of demand and the resulting upward momentum could turn the indicators around and draw more traders and investors into the uptrend.
Final Summary
- VVV’s tokenomics updates on Friday, the 17th of July, likely spurred a bullish resurgence from the $10 support zone.
- A rally back to $21 and possibly as high as $25 can be expected, if the higher timeframe uptrend stays intact.
