The recent surge in Venice Token price is no longer just a spontaneous pump of an altcoin. It appears to be a strategic move to create a supply squeeze, all wrapped up in the current hot narrative of decentralized AI.
Today, VVV saw another 18% increase following Venice CTO Jesse Proudman’s announcement that subscription and credit purchases on AskVenice had hit a new record, surpassing the previous high by 10%. This news clearly excited traders, perhaps a little too much.
Venice Token Supply Shock Continues to Grow
The turning point came earlier this month when Venice reduced annual token emissions from 6 million VVV to 5 million on May 1, marking the first phase of a plan to decrease emissions to 3 million by July. With less supply and the same speculative demand, the stage was set for an upward trend.
Moreover, an update on April 27 introduced an aggressive burn mechanism, where new Pro subscriptions now burn $2 worth of VVV instead of $1, effectively reducing circulating supply as platform usage increases.
The real kicker? VVV had already reached a 16-month high near $16 on May 9 before today’s surge pushed it even higher to $18.
AI Narrative Continues to Attract Traders
The recent partnership announcement with StrikeRobot on May 11 added another layer of excitement. Venice’s private AI infrastructure will now support humanoid robots with AI vision and decision-making capabilities, providing traders with the “real-world utility” story they have been seeking in the AI sector.
Additionally, as Bitcoin surpassed $80,000, broader AI-themed altcoins also benefited, leading speculative capital back into high-beta plays like Venice Token.
Mixed Warnings in Momentum Signals
Technically, momentum indicators still indicate bullish momentum with MACD and Awesome Oscillator showing strong upside strength, and community sentiment remaining 84% bullish.
However, the chart is no longer as calm as before. RSI has climbed to 80, a level often associated with overbought conditions and potential mean reversion. CMF is also hovering near 0.26, a range that could indicate a possible selloff despite strong inflows.
If profit-taking intensifies, traders may focus on the $10 level as a key support zone for Venice Token.
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