USD.AI's CHIP token climbed 29.1% over the past 24 hours, lifting the token's market capitalization to $135.6 million—the highest level achieved since May.
What's Driving the Gains
The recent rally reflects broader capital rotation into altcoins, which have grown at a comparable pace to Bitcoin in recent weeks. Individual altcoins have posted double- and triple-digit percentage gains since mid-August.
Interest has also been fueled by USD.AI's alternative approach to token economics. David Choi, co-founder and CEO of Permian Labs and creator of USD.AI, has promoted what he calls a "commit-and-compound" model for the protocol's ecosystem. Rather than the traditional buyback-and-burn approach used by most crypto protocols, an operating company could accumulate and hold CHIP tokens, increasing its ownership stake over time.
Technical Outlook
CHIP maintained a bullish trend at the time of writing. The token breached resistance at $0.044 in early September and subsequently moved past the $0.0625 swing high, establishing an uptrend structure.
Technical indicators suggested strong buying pressure, with the Chaikin Money Flow at +0.16 signaling robust capital inflows. The Directional Movement Index showed a steady uptrend in progress, with market conditions not yet extended.
Immediate price targets include the current local highs near $0.0717. If the token pulls back, the $0.043–$0.053 range and the $0.052–$0.061 fair value gap represent potential support areas. Further up, the $0.080 and $0.112 levels from April represent longer-term targets.
