Why DeepNode Price Crashed 78 Percent Today After Launch

DeepNode Price Prediction As AI Tokens Rally Elsewhere

DeepNode came into the market on January 9, and the move it made today caught a lot of people off guard. In the last 24 hours alone, DeepNode (DN) is down around 77.84%, while the broader crypto market has actually moved higher by about 3.35%. That contrast feels hard to ignore.

What makes this DeepNode price prediction even more puzzling is the sector DeepNode belongs to. It is an AI-focused token, yet today AI coins are not under pressure. Story IP and ICP are both seeing strong upside, sitting among the top gainers with healthy volume. When money is clearly flowing into AI, it is fair to ask why DeepNode is moving the other way just days after launch.

Is this simply the kind of early chaos new tokens often go through? Or did early buyers decide to exit quickly, putting pressure on a market that is still thin? There is also the question of whether expectations ran ahead of reality. At this stage, it is not easy to pin it down, but the price action suggests this move is more than just random noise.

Post-Launch Token Distribution Adds Selling Pressure

DeepNode is still in its early trading phase, where token distribution tends to matter more than broader narratives. DN’s Token Generation Event on January 9 unlocked tokens for early contributors, validators, and airdrop recipients, putting fresh supply into the market almost immediately after launch. Historically, such events often lead to short-term sell-offs as some participants choose to realize gains or reduce exposure early.

Source: X@DeepNodeAI

What adds to the pressure is how the supply is currently structured. Around 50% of DN’s total supply is allocated to community incentives and grants, while only about 36% is circulating in the open market. In setups like this, even moderate selling from unlocked allocations can feel overwhelming. This dynamic seems visible in the numbers as well. Over the last 24 hours, trading volume climbed to nearly 169 million dollars, far exceeding DeepNode’s market capitalization of roughly 6.8 million dollars. That imbalance typically points to heavy churn rather than steady accumulation.

With liquidity still developing, these early unlocks can easily dominate price action. In such conditions, distribution mechanics often drive short-term moves more than sector-wide trends, which may help explain why DN coin struggled even as other AI tokens showed strength.

Price Discovery Phase and AI Market Preference for Established Tokens

DeepNode is still in its price discovery phase, where sharp swings are common and stability is rare. The market is still testing what price levels make sense, which often leads to uneven moves in the early days. At the same time, while the AI sector is showing strength, capital tends to flow toward established tokens like Story IP and ICP. New AI projects usually take time to earn similar confidence, leaving them more vulnerable during early trading.

DeepNode Short-Term Price Prediction Based on Current Setup

After losing the $1 support, DeepNode has already gone through a heavy flush and is now trading around the $0.24–$0.25 zone. This area is acting like a temporary floor for now, mainly because selling looks stretched. RSI is already in the oversold region, which often slows downside momentum, even if it does not reverse it immediately.

Source: TradingView

If the price manages to hold above the $0.22–$0.20 range, a short-term bounce toward $0.30–$0.38 cannot be ruled out. This zone may act as the first reaction area rather than a trend change. On the flip side, if current support fails to hold, the downside could extend toward the $0.15 region, especially if volume picks up again.

As long as price remains below the 9 EMA, the structure stays weak. Any upside move should be viewed as a relief bounce, not confirmation of recovery.

Expert View on DeepNode Price Prediction

Looking at the current setup, the DeepNode Price Prediction still feels tied to how the market digests the early damage rather than any fresh trend taking shape. The break below the $1 level seems to have reset price expectations completely, with trading now stuck around the $0.20–$0.25 zone. If this area manages to hold, a short-term move back toward $0.30–$0.38 could happen, but that would likely be more of a reaction than a real turnaround. On the downside, losing current support could drag the price closer to $0.15. For now, DeepNode looks like a market trying to find its footing after a rough start, not one ready for clean direction.

YMYL Disclaimer: This article is strictly informational in nature and does not constitute an investment recommendation. Investment in cryptocurrencies is extremely volatile. It is always essential to do your own research before making any investment.