Key Highlights:
- COAI token is down by almost 30% today, October 31, 2025.
- Traders rotated out of AI tokens into other trending sectors such as memecoins.
- Whale risk remains high as 88-97% of supply is held by top wallets.
The AI crypto sector dropped sharply today, October 31, with the sector index falling 8.6%. This number inidcates a strong bearish shift after weeks of volatility. COAI (ChainOpera AI) took the biggest hit and crashed about 30%. This drop shows how fragile retail-driven AI tokens can be.
It was also observed that traders moved their money to other memecoins like BUILDon on Binance chain and the price of those memecoins rallied. BUILDon experienced a jump of 19.5%. This is a clear indication that investors were rotating capital into safer or faster-moving speculative plays instead of holding AI tokens.
At press time, the price of the token stands at $1.90 with an drop of 29.86% in the last 24-hours as per CoinMarketCap.
Retail-Driven AI Tokens Face Sharp Sell-Off as Hype Cools
COAI over this week has experienced a drop of 91% and since it is dominated by retail investors, the token is extremely fragile. Retail-heavy token usually react quickly to changes in hype or sentiment, and with the AI narrative losing momentum as of now, traders shifted their money to faster moving opportunities elsewhere. The momentum shifted because the AI narrative lost steam and traders started taking profits.
Various other AI-themed tokens have also seen decline in prices which indicates a broader pullback in the AI crypto space. These tokens include Fetch.ai (FET), The Graph (GRT) and THETA.
COAI Breaks Key Support, Signals Further Downside
If you look at the chart of the token, technically, the token is showing strong bearish signals. The token has slipped below the important $1.70-$2.00 support zone, the same level which had earlier fuelled a massive 600% rally.
The RSI of the token is around 35, which means that the token is close to being oversold, but there are no signs of reversal as of now. The MACD also shows that selling pressure is still increasing.
Around $8 million worth of positions were liquidated during the drop. Normally, this kind of liquidation triggers a quick bounce if buyers jump in, but this time, the price did not recover, which indicates that the traders are losing confidence in the token.
If at all the sell-off continues, the next key support is near $1.30 mark, which has the potential to act as the next potential bounce zone.
High Supply Concentration Adds Selling Risk
If you keep the technical challenges aside, COAI has a deeper problem, as a large supply is controlled by a few big holders. On-chain data shows that the top 10 wallets hold nearly 88%-97% of the entire circulation supply. Such situations raises serious concerns amongst the investors and community members. When a few wallets control that much, the token becomes risky because any large whale can crash the price.
The only potential positive is that whales might use the current low prices to accumulate, which could help stabilize the price of the token. But the risk is still uneven; if any major holder decides to exit instead, the price could drop even faster.
COAI Needs Fresh Catalyst to Reverse the Downtrend
Looking at the bigger picture, COAI’s drop is happening because several things went wrong at the same, traders left AI tokens for other trending coins, the price fell below important support levels, and a few big holders control most of the supply. The token has previously revived itself from big crashes, it jumped 794% in one month, after 91% weekly drop, showing that COAI can bounce back if the the buyers return.
Also Read: Sui (SUI) Slides 6.5% Amid Token Unlock Fears Despite SuiNS Airdrop
