PAAL AI (PAAL) started the new year with strong momentum, delivering an exceptionally sharp advance over the past week. Following such an aggressive move, a cooling phase appears increasingly likely. The coming sessions will help clarify whether the current pullback represents a healthy retracement within the broader trend or the beginning of a deeper corrective phase.

PAAL technical analysis

 

PAALUSD - 1 Day Time Frame

 

PAAL, in line with much of the broader market, entered the new year on a strong footing. Over the past week, price advanced by more than 125%, but it is now encountering a notable resistance zone between $0.049 and $0.053. This area also contains the psychologically important $0.05 level, where profit-taking commonly emerges after sharp upside moves.

Although price briefly pushed above this zone, the move was limited to a wick, indicating a lack of sustained acceptance. The most recent daily close occurred back below this resistance, and subsequent price action has continued lower. This behavior suggests that selling pressure remains active in this region, with sellers still exerting influence around the upper boundary.

The first notable support area is located at the 0.236 Fibonacci retracement level near $0.044, where price has shown a constructive reaction so far. Below that, the 0.382 Fibonacci level at $0.038 represents the next area of interest. Should buying interest prove insufficient at that level, the corrective move could extend toward the primary support zone.

This broader support area spans the 0.5–0.618 Fibonacci retracement levels, roughly between $0.028 and $0.033.

At the same time, this region partially overlaps with a daily support zone in the $0.024–$0.028 range. This confluence increases its technical significance and suggests it could attract a more pronounced response from buyers compared with the higher support levels. If price were to rotate into this area, a stronger stabilization attempt could emerge.

PAAL price target

If PAAL regains upward momentum in the coming days, the initial upside focus would return to the $0.049–$0.053 resistance zone. This area previously capped price action and triggered a sharp rejection after being tested only via a wick. Given the presence of the $0.05 psychological level, renewed interaction with this zone could again be accompanied by elevated volatility and intermittent selling pressure.

In the event of a sustained breakout followed by a successful hold above this resistance band, attention could shift toward the next resistance zone between $0.077 and $0.083. Beyond that, an additional resistance area is located in the $0.091–$0.097 range. Above this region, the $0.10 psychological level stands out as a potential liquidity concentration point, which may also coincide with increased profit-taking activity.