Key Takeaways
- The Bittensor (TAO) price trades less than 30% away from its all-time high.
- Artifical Superintelligence Alliance (FET) broke out from a long-term resistance.
- Near Protocol (NEAR) trades above a long-term horizontal support area.
Besides memecoins, AI tokens have been the best-performing category in the current market cycle. While the price appreciation has not been spread evenly, most AI altcoins have positive rates of increase.
Let’s take a look at the price movement for three specific altcoins, which have bullish formations in October that may lead to substantial gains.
AI Altcoins Surge
A basket of the five biggest AI altcoins has surged over 250% since the Aug. 5 low.
On Sept. 18, AI tokens broke the trend line that marked the downward trend since March, accelerating the upward movement.
Even though the movement has stalled since Oct. 7, the basket is well above the 0.618 Fibonacci retracement resistance level.
This is a sign that the upward movement is impulsive since corrective movements often get rejected by the 0.618 Fibonacci resistance.
Let’s take a look at the three AI altcoins with promising outlooks that can perform well through the rest of October.
New TAO All-Time High?
The most likely wave count suggests that TAO will reach a new all-time high price.
The count indicates that the price completed a complex W-X-Y-X-Z correction (yellow) starting with the all-time high of March 6. The correction ended with a low of $162 on Aug. 5.
The TAO price has increased rapidly when in what is almost certainly an impulsive five-wave increase (white). The sub-wave count (black) shows that sub-wave three extended.
The sub-wave count also suggests that wave three has already ended and TAO has now started the corrective wave four.
Wave three has almost exactly 2.61 times the length of wave one, a likely level for an extended wave three to end.
If this is the case, TAO can complete wave four near $505, the 0.382 Fibonacci retracement support level, and a horizontal support area. The bearish divergence (green) in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) also support this possibility.
A potential target for wave five will be $891, created by the 3.61 extension of wave one. A more accurate target can be found once wave four is over.
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Can FET Regain Footing?
The FET price has also increased since Aug. 5, though it has done so at a much slower rate compared to TAO. Nevertheless, the movement caused a breakout from a descending resistance trend line that had been in place since the March all-time high. Its breakout is a sign that the correction is over.
Since then, FET has increased alongside a shorter ascending support trend line (dashed). It reached this trend line again on Oct. 10. Because the trend line has sloped the upward movement, the FET price must not break down below it.
Furthermore, the daily RSI and MACD are at risk of falling below 50 and 0, respectively. Therefore, if FET bounces, it will save both a price and an indicator breakdown.
In that case, the next closest resistance area will be at $2.10, amounting to a 60% price increase.
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NEAR Bounces at Support
The final AI altcoin with a positive formation is NEAR. Unlike TAO and FET, the NEAR price action is bullish in higher time frames. More specifically, NEAR has bounced above the long-term horizontal support area at $3.50 (white icons).
This has been the most important area for NEAR’s price movement since 2021. Movements above and below it have almost perfectly ascertained if the trend is bullish or bearish.
Besides the bounces, the NEAR price also trades in a descending parallel channel, considered a corrective pattern. Currently, the price attempts to validate the channel’s midline.
If it successfully breaks out, NEAR can increase to the yearly high of $9.01 and possibly even move toward the all-time high of $20.59.
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AI Altcoins in October
TAO, FET, and NEAR all have bullish formations that could lead to price appreciation in October. TAO, in particular, stands out for the potential to reach a new all-time high.
Read More: Top 3 Artificial Intelligence (AI) Coins of the Last Week of September 2024
Top 3 Artificial Intelligence (AI) Coins of the Last Week of September 2024
