Nansen Launches AI On-Chain Trading Solution Amid Extreme Fear Market

VADODARA, January 21, 2026 — Cryptocurrency data analytics firm Nansen has launched an AI-powered on-chain trading solution, integrating analytics and execution within a single interface. According to The Block, the solution is initially available on Solana and Base chains. This latest crypto news arrives as the Crypto Fear & Greed Index hits 24/100, signaling extreme fear. Market structure suggests this tool could target retail and institutional liquidity pools during volatile conditions.

Market Context & Background

On-chain analytics have evolved from passive data feeds to active trading signals. Nansen’s move mirrors the 2021 trend where platforms like Glassnode expanded into predictive modeling. The integration of AI with real-time blockchain data aims to reduce latency in identifying Fair Value Gaps (FVGs). Historical cycles indicate that new trading infrastructure often precedes volatility compression. This development follows other market shifts, such as Bithumb suspending HP deposits and RIVER Token surging 22% on Coinone, highlighting fragmented liquidity in extreme fear environments.

What Happened?

Nansen deployed its AI on-chain trading solution on January 21, 2026. The Block reported the integration into Nansen’s web and mobile apps. Key features include combined analytics and trading capabilities. Initial chain support is limited to Solana and Base. No specific AI model details were disclosed, but on-chain data indicates a focus on high-frequency order flow analysis. The launch coincides with Bitcoin trading at $89,589, down 1.56% in 24 hours.

Technical Analysis & Price Action

Bitcoin’s current price sits near a critical volume profile node at $90,000. The 50-day moving average at $91,200 acts as dynamic resistance. RSI reads 42, indicating neutral momentum with bearish bias. A Fair Value Gap exists between $87,500 and $89,000, likely targeted by the new AI solution for liquidity grabs. Bullish invalidation level: $87,500 (break below this order block signals continued downtrend). Bearish invalidation level: $92,000 (break above this Fibonacci resistance invalidates the bearish structure). Market structure suggests sideways consolidation until a clear breakout.

By The Numbers

Why It Matters

Institutional impact: This solution could reduce execution slippage for large orders, compressing spreads on Solana and Base. Retail impact: AI-driven signals may increase trading volume, but also risk amplifying herd behavior. The integration of analytics and trading creates a closed-loop system, potentially leading to gamma squeezes in illiquid altcoins. According to Ethereum’s official documentation on layer-2 scaling, Base’s architecture supports high-throughput transactions, making it ideal for AI-driven arbitrage.

Community Sentiment

Market analysts on X/Twitter highlight the timing. One noted, “AI tools in extreme fear markets often front-run retail capitulation.” Another stated, “Solana’s low latency is perfect for this, but watch for MEV exploitation.” Sentiment is cautiously optimistic, with concerns about data centralization.

Price Prediction / Future Outlook

Bullish Case: If the AI solution attracts institutional flow, Bitcoin could reclaim $92,000 and target $95,000. Solana and Base tokens may see increased volume, leading to a short squeeze. Bearish Case: If extreme fear persists, a break below $87,500 could trigger a liquidity grab to $85,000. The AI may exacerbate selling pressure by identifying weak hands.