ai16z confirmed as native token for Auto.fun as price sentiment turns bullish

ai16z has been confirmed as the native token of the newly launched Auto.fun AI agent platform. This could mark a turning point for ai16z price, which is showing early signs of recovery after weeks of stagnation.

Shaw, founder of Elizalabs and the open-source elizaOS, confirmed that ai16z will serve as the native token of the Auto.fun launchpad, which officially launched on April 18. This milestone marks the successful execution of a key deliverable from the project’s Q1 roadmap.

Designed as a development ground for no-code AI automation, Auto.fun allows for development and deployment of autonomous AI agents that can interact with other AI agents and Web3 services. Potential use cases include automating DeFi yield farming strategies, managing social media accounts, and executing trades on behalf of users.

According to the blog post on the project’s governance forum, the launchpad serves as “the primary way to implement ‘flywheel’ tokenomics that drive value to ai16z” To this end, the token’s utility mechanics include allocating a percentage of launch fees to ai16z, requiring ai16z holdings for access to new agent launches, using the token for initial offerings, and pairing agent tokens with ai16z in liquidity pools.

As far as the price of ai16z token is concerned, this development could signal an upcoming rally — provided the platform gains strong adoption post-launch. As more users engage with the platform and launch AI agents, the increased utility and holding requirements for ai16z may reduce circulating supply and increase buying pressure.

This could be just the catalyst ai16z needs to break out of its prolonged downtrend. The token has been range-bound between $0.10 and $0.20 since March 7, when it lost the crucial $0.20 support and continued drifting lower.

Now, signs of a potential recovery are emerging, with momentum indicators signaling increased bullish momentum. The MACD line has crossed above the signal line, and the histogram has flipped positive. The RSI is at 47.07, having broken its internal range and attempting to push toward 50. A break above 50 would suggest that buyers are starting to take control.

Since April 9, there’s also been a noticeable uptick in green volume bars, hinting at possible accumulation. However, Average True Range is at 0.0220, which is extremely low, showing price compression. This could be the calm before a breakout, but also means tight ranges in the near term.

The next immediate target for ai16z is around $0.175, which aligns with the 50-day SMA. If this level is cleared, the price could rebound toward $0.20, and a successful reclaim of that zone may open the path to $0.25, a horizontal support level established in early February.