The decentralized AI sector, which is driving the current bull trend, faces a harsh reality test. Sahara AI, a highly watched project due in late 2025, is seeing a rapid 45% correction in less than 24 hours, leaving investors in a state of uncertainty.
A brutal market purge
While the “AI + Crypto” narrative has dominated market conversations,… the desert The token experienced a dark trading session. Trading around $0.081 At its peak during the day, he encountered the asset Intense selling pressureand falling to a low level $0.0346 according to Binance Data. Although a slight recovery brought the price back towards $0.044 region, volatility remains high.
This corrective move, which many on-chain analysts described as a “sudden decline,” occurred in the context of… Aggressive profit taking. After the initial pump for over 40,000% After being listed on tier 1 stock exchanges like Binance And OKX, the market seems to be looking for an equilibrium price. Successive liquidations on long positions intensified this movement, creating a climate of… Extreme fear Among retail owners.
Reasons why artificial intelligence crashes in the desert
Why is the project supported by Heavyweights like Pantera Capital, Polychain, and Binance Labs Wildly correct? There are three technical and psychological factors that explain this rebound:
- The effect of “selling the news” afterAirdrop: Distributing 8% of the supply to testnet users resulted in a Huge flow of liquidity. Many recipients chose to lock in their gains immediately, creating a selling wall that was difficult for market makers to absorb.
- Fear of opening: The due date schedule causes anxiety. The market is expected to open 133 million tokens Scheduled for December 26, 2025. This type of event, which is often synonymous with dilution, prompts traders to exit their positions prematurely to avoid becoming “exit liquidity.”
- Sector volatility: Although AI is the mega trend of 2025, “AI native” assets remain highly speculative. The slightest sign of weakness provokes disproportionate reactions.
In this context, the founder of Sahara AI recently spoke about the incident. According to him, Fatah is not responsible He adds that the fundamentals remain unchanged.
Strong fundamentals or house of cards?
despite this Desert AI blockchain ShatterIt is necessary to distinguish between the price of the token and the technological value of the project. Sahara Labs deploys real-world infrastructure aimed at artificial intelligence democracy, A far cry from useless memcoins.
With a fundraising tour between 43 and 51 million dollars With institutional support from Microsoft, Amazon, and MIT, the project maintains… Big war chest To develop a decentralized market and data services.
The data services platform already exists, and Road map For the third quarter and fourth quarter of 2025 (incl Mainnet and DeFi Copilot) It is followed. For long-term investors, this disconnect between price and technical execution can indicate an undervalued area, provided current support holds.
Outlook: Should you buy the dip?
The current situation divides observers. On the one hand, the RSI is in the oversold zone and fundamentals indicate a Buying opportunity For long-term targets (Horizon 2030). On the other hand, the market structure remains in place Bearish in the short term As long as the price does not regain the psychological level of… $0.058.
While the current volatility provides interesting entry points for smart traders, caution is in order before the December open. Monitoring whale activity and sustained social size will be critical to validate a potential trend reversal or continued decline.
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