AI Tokens Buck Trend With Nvidia Earnings Looming as Bitcoin Slips Below $60K
How Will AI Tokens React to Nvidia Earnings? | Credit: Rob Anderson
Key Takeaways
- Nvidia (NVDA) will release its second-quarter earnings reports on Aug. 28.
- A basket of Artificial Intelligence (AI) tokens has performed well in August.
- Who is leading the charge for AI tokens, and will this performance continue?
August has not been a positive month for the cryptocurrency market. It started with a sharp drop that culminated with a low on Aug. 5. While the market has recovered since, most cryptocurrencies trade below their opening price on Aug. 1.
AI tokens have mostly bucked the trend, showing a positive performance in August. Who are the best performers in this category, and how will the NVDA earnings report on Aug. 28 affect their prices?
AI Tokens Outperform
The basket of AI tokens has been by far the best performer compared to other baskets in August. It is the only one with a positive performance, increasing by nearly 7% (white).
This is much better than Bitcoin (BTC), which has fallen 9% and slipped below $60,000 on Aug. 27.
The closest category is Decentralized Finance (DeFi), which has posted a decline of nearly 6%.
The worst performers are memecoins and blockchain coins with a drop of almost 20%.
With the NVDA earnings looming, the positive performance of AI tokens may continue.
However, it is worth mentioning that in our previous analysis, we noted that the NVDA price has a higher correlation to the overall cryptocurrency market compared to the AI tokens.
Nevertheless, various investment firms consider the report crucial, with many expecting the company to shatter its previous profit records.
Who is Leading the Charge
Upon closer look, the three best performers since the start of August are FET, TAO, and RNDR.
FET has increased by nearly 12%, TAO by 8% and RNDR by 4%. NEAR and GRT are in negative territory at -10% and -14%, respectively.
FET was recently rebranded to Artificial Superintelligence Alliance after a merger with OCEAN and AGIX.
The FET price action is especially bullish since it shows a bounce at the previous long-term resistance area of $0.90.
After the bounce, FET created a large bullish weekly candlestick, completing a morning star pattern in the process.
Furthermore, the price of FET validated a long-term ascending support trend line (white) and broke out from a shorter-term resistance trend line (black).
Finally, the wave count gives a bullish outlook. The most likely count suggests that FET completed wave four in a five-wave increase.
Wave three extended and has 1.61 times the length of wave one. Its sub-wave count is in black.
If wave five also extends and has the same length as wave three, the price will reach a new all-time high at $13.27.
Even if wave five does not extend and has the same length as wave one, the FET price will still reach a new all-time high at $8.50.
