AI Crypto Coins Riding High: Can Bittensor and Fetch.ai Maintain Momentum?

Published November 20, 2023 12:54 PM

By Nikola Lazic

AI tokens rise but can they keep on surging?

AI tokens surge amid positive market news. Will the rise continue?

Key Takeaways

AI tokens surged on industry developments.
TAO and FET show triple-digit gains.
Cooling-off is expected, but new highs are likely to occur soon.

AI-focused cryptocurrencies are experiencing a surge in optimism, buoyed by recent advancements in key AI companies that have generated excitement about the future of the technology sector.

Over the weekend, noteworthy announcements from industry leaders, including Elon Musk‘s disclosure about X Corp shareholders’ 25% stake in the new AI venture xAI and the potential return of Sam Altman to the OpenAI board, have contributed to a bullish sentiment in the AI token market. Notably, AI tokens such as Bittensor’s TAO and Fetch AI’s FET have seen impressive gains of up to 16% in the past 24 hours, outperforming major cryptocurrencies like Bitcoin.

This upswing in AI tokens reflects a growing interest in the sector, viewed as a potential catalyst for a significant bull run, akin to the impact of gaming and DeFi tokens in the previous market cycle from 2020 to 2022. This post will delve into these recent developments and assess whether Bittensor and Fetch.ai can sustain their notable momentum in the AI crypto landscape.

TAO Price Analysis

TAO’s price has been on an upward trajectory since October 20. Initially consolidating within a symmetrical triangle, the cryptocurrency experienced a notable shift after establishing a higher low at $46. This marked the beginning of an uptrend, initiating a breakout and subsequently gaining substantial momentum.

3rd wave near the end — Third wave is near the end

Today, it reached $291, marking a remarkable 538% increase from its October low. While the price remains in an upward trend, signs suggest the ascent may soon conclude. Notably, the price has reached 1.618 on the logarithmic chart, signaling potential overextension based on the wave structure.

Although the RSI is approaching the overbought zone, previous instances on November 5 and October 25 showed the RSI touching this level without a subsequent slowdown in momentum. This suggests the possibility of further upward movement.

However, considering the likelihood of being in wave 3 within the five-wave impulse, a retracement in wave 4 is anticipated to commence soon. Following this, another high is expected with a price target of $430.

FET Price Analysis

FET increased by 182%, measured from its last low of $0.20 on October 19, reaching its highest point today of $0.57.

five-wave impulse soon to end — Five-wave impulse to end soon

This was a result of a breakout momentum from the major descending trendline, originating from the all-time high of $1.20. The higher low observed on October 19 suggests increasing buyer interest, propelling the price to revisit its previous high recorded on February 8.

While a higher low typically leads to a higher high in an uptrend, this may not necessarily unfold in the current scenario. It’s plausible that the five-wave impulse has concluded, with the price potentially undergoing a minor pullback towards the $0.40 area.

Despite the absence of clear signs of encountered resistance, the wave structure and the RSI, currently situated in the overbought zone, suggest caution, akin to the observations made in the case of TAO.

Conclusion

AI tokens have experienced significant surges in the recent past, displaying remarkable gains. Despite potentially overextended price charts for TAO and FET, there are no evident signs of weakness in either case.

Considering the overall price structure and technical indicators, it seems that the current uptrend initiated on October 20 is approaching its culmination. Then, a period of consolidation or cooling off is likely in the near future.

However, the charts suggest that these tokens are going to reach new highs, indicating the commencement of a broader uptrend.

Disclaimer

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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