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ASI Alliance Voting Ends Today — AGIX, FET & OCEAN Drop 30%

Published April 16, 2024 9:10 AM
Valdrin Tahiri
Published April 16, 2024 9:10 AM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • The ASI governance proposal for AGIX holders will end today.
  • If successful, FET will be the reserve currency for the ASI alliance.
  • The three AI tokens have fallen nearly 30% since the start of April.

In the beginning of April, Fetch.AI, Ocean Protocol and SingularityNET announced the intent of creating a decentralized AI platform, the Artificial Superintelligence Alliance (ASI).

AGIX holders will vote on the proposal today, and the merger will go through if the proposal is successful. Since FET will be the reserve currency, its price movement is likely to influence the other two.

Despite a significant correction, the FET price bounced on April 13. Does this bounce mark the end of the correction?

What is the Governance Proposal?

On April 2, governance proposals started for FET and AGIX holders. There were three government proposals for FET, and they passed with a turnout of 76%. 99% of the votes were positive.

The first one was about FET being converted at a 1:1 rate to ASI, while the second and third dealt with AGIX and OCEAN merging into ASI at a 1:0.43 conversion rate.

While OCEAN holders did not have a governance proposal in their own blockchain, AGIX ones did. The voting  closes today, with holders having votes Â proportional to their AGIX holdings.

How Have the Tokens Performed Since the ASI Announcement?

The three AI tokens have all underperformed since the announcement on April 2. FET (white) has fallen by 28%, while AGIX (orange) and OCEAN (blue) have fallen 30%.

FET will be the reserve currency for the alliance and the tokens will be converted to ASI at a 1:1 ratio. Then, OCEAN and AGIX will be converted at a 0.43 ratio.

AI Token Performance Since Announcement
Custom Daily Chart | Credit: TradingView

Given this mechanism, it is likely that the price of OCEAN and AGIX will be close to 0.43 times the price of FET in order to eliminate arbitrage opportunities. The procedure also explains the fact that the price movement of the three assets is almost identical to each other since the announcement.

Currently, OCEAN has a 0.41 ratio with the FET price while AGIX has a 0.40 one, meaning they are slightly undervalued.

FET Price Prediction: When Will the Correction End?

The FET price started a five-wave upward movement in December 2022. It is likely that wave three ended on March 11 and the price is now correcting in wave four. However, it is not certain if wave four has ended or another decrease is in store.

The sub-wave count is in black, showing an extended wave three and an irregular flat correction for wave four. The correction reached the 0.5 Fibonacci retracement support level before bouncing (green icon).

FET Price Wave Count
FET/USDT Daily Chart | Credit: TradingView

The daily RSI also fell to 36, the lowest level since wave three started. This confirms the price is in wave four.

Wave four is often shallow, so even if the FET price has not reached its bottom yet, it is likely to do so at the 0.618 Fibonacci retracement support level of $1.30 at the lowest.

However, it is possible FET will continue trading sideways before wave five begins, taking it to a new all-time high.

Better Times Ahead

The FET price has fallen significantly since its all-time high of $3.48 on March 28. While the price bounced on April 13, it is not certain if the correction is complete. In any case, the wave count indicates that it is unlikely FET falls below $1.30 in the current correction. Another upward movement and all-time high are probable this year.

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