USD.AI jumps 29% as ‘commit-and-compound’ model draws attention – Can CHIP keep climbing?

USD.AI [$CHIP] token prices are up by 29.1% in the past 24 hours, bringing the token’s market cap to $135.6 million. This is the highest level achieved since May, and social sentiment suggested it could be just the start of a bullish run.

Why is $CHIP up today?

In recent weeks, capital rotation into altcoins has seen the altcoins grow at a comparable pace to Bitcoin [BTC]. Individual altcoins have made double- and even triple-digit percentage gains since mid-August.

The “value accrual ontology” was also helping boost social sentiment around USD.AI, the permissionless lending protocol designed to finance AI infrastructure. David Choi, co-founder and CEO of Permian Labs and creator of USD.AI, talked about a Copernican Model for the USD.AI ecosystem with $CHIP at the centre, much like HYPE is at the centre for the Hyperliquid/Tradexyz case.

Essentially, instead of the buyback-and-burn model that crypto protocols generally go for, an operating company could buy and hold $CHIP, increasing its share, a model he termed as being closer to a “commit-and-compound” model.

$CHIP maintains a bullish trend; here are the next targets

The $0.044 swing high from June was part of the downtrend, the swing high that had anchored the trend in place. This resistance was breached in early September.

A pullback below $0.040 by mid-September was followed by another move past the then-latest swing high at $0.0625. The swing structure has been established and maintained.

At the time of writing, the CMF was at +0.16 to signal strong capital inflows. The DMI showed a steady uptrend in progress.

The $CHIP market conditions were not overextended. The DeFi token can climb past $0.0717, the current local highs. However, in case of a pullback, the $0.043-$0.053 area would be an interesting area for long-term buyers.

Furthermore, the fair value gap (white box) at $0.052-$0.061 was a demand zone to keep an eye on. There is a chance for a bullish reaction from $0.056, the imbalance’s midpoint.

To the north, the $0.080 and $0.112 levels from April would be the next price targets on $CHIP’s uptrend.

Final Summary

• The value accrual ontology creator David Choi, in a post on X, helped fuel bullish market sentiment around USD.AI.
• In a relatively quiet crypto market, $CHIP has made steady gains in recent days, maintaining its uptrend.