The decentralized AI sector, leading the current bull run, faces a harsh reality check. Sahara AI, a highly-watched project in late 2025, sees a rapid 45% correction in under 24 hours, leaving investors uncertain.
While the “AI + Crypto” narrative dominated market conversations, the SAHARA token experienced a dark trading session. Trading around $0.081 at its intraday peak, the asset faced intense selling pressure, plunging to a low of $0.0346 according to Binance data. Although a slight recovery brought the price back toward the $0.044 zone, volatility remains extreme.
This corrective move, described as a “shock drop” by several on-chain analysts, occurred in a context of aggressive profit-taking. After an initial pump of over 40,000% following its listing on Tier-1 exchanges like Binance and OKX, the market appears to be searching for an equilibrium price. Cascading liquidations on long positions intensified this movement, creating a climate of extreme fear among retail holders.
Why would a project backed by heavyweights like Pantera Capital, Polychain, and Binance Labs correct so violently? Three technical and psychological factors explain this retracement:
In this context, the founder of Sahara AI recently communicated about the crash. According to him, the unlock is not to blame and adds that the fundamentals remain unchanged.
Despite this Sahara AI blockchain crash, it is crucial to distinguish the token price from the technological value of the project. Sahara Labs deploys a real infrastructure aimed at democratizing AI, far removed from utility-less memecoins.
With a fundraising round between $43 and $51 million and institutional backing from Microsoft, Amazon, and MIT, the project maintains a significant war chest to develop its decentralized marketplace and data services.
The Data Services platform is already live, and the roadmap for Q3 and Q4 2025 (including the mainnet and DeFi Copilot) is being followed. For long-term investors, this disconnect between price and technical execution could signal an undervalued zone, provided the current support holds firm.
The current situation divides observers. On one hand, the oversold RSI and fundamentals suggest a buying opportunity for those targeting the long term (2030 horizon). On the other hand, the market structure remains bearish in the short term as long as the price does not reclaim the psychological level of $0.058.
While current volatility offers interesting entry points for savvy traders, caution is warranted before the December unlock. Monitoring whale activity and sustained social volume will be crucial to validate a potential trend reversal or continuation of the decline.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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