The native token of Venice, a private generative AI platform, experienced a significant rebound on July 17, rallying 20.1% from a 10-week low of $9.81 to a local peak at $11.79. Trading volumes also surged, with the VVV/USDT spot pair on Bybit seeing more than a fourfold increase from the previous day, suggesting heightened market interest.
New Tokenomics Drive Buying Pressure
Jon Venice, Head of Strategy at Venice, announced two important updates implemented on the same day. First, 5% of the revenue generated from user purchases of API credits for the AI service will be allocated to a buy-and-burn mechanism, effectively reducing circulating supply. Second, the supply target for DIEM a token that can be staked to earn $1 of daily, renewable AI compute credits was raised from 38,000 to 40,000 units. DIEM tokens are minted by locking VVV, creating additional demand for the native token.
Technical Indicators Suggest Longer-Term Uptrend
Austin Barack, founder and managing partner at Relayer Capital, highlighted that VVV has consistently found support around the $10 level, which acted as a foundation for previous rallies in April. He projected a potential surge to $23 if the buy-and-burn catalyst replicates past performance. Chart analysis shows the token’s price action remains bullish on the daily timeframe, with no breach of the swing low at $5.05. The token has bounced off the critical Fibonacci retracement zone between 61.8% and 78.6%, although moving averages like MACD and Chaikin Money Flow were bearish due to the preceding downtrend since late May.
Increased buying momentum could reverse these technical indicators, attracting more traders and investors and fueling further gains. If current trends continue, the token could target a rally reaching $21 to $25 while maintaining its upward trajectory.
This material is for informational purposes and does not constitute financial advice.
