AI cryptocurrency tokens took off to the upside on Friday. Will they spark the next phase of the bull rally?
An AI led bull rallyThe crypto bull rally that started at the beginning of this year was very much led by a strong artificial intelligence (AI) narrative. ChatGPT was out in the public arena and much polemic debate raged over its use.
As the interest in AI continued to gather momentum, the focus turned to the cryptocurrency sector and its obvious capability to integrate AI and use its own particular technology innovations to find novel use cases.
According to Coingecko, the AI crypto category currently has a market cap of around $2.6 billion. Back in early January this would have been a lot less and value investors saw the potential in buying up several of the crypto AI tokens.
Massive AI token surgeOne of the biggest recipients of this buying spree was SingularityNET ($AGIX). $AGIX went from a value of $0.0450 on January 1, to $0.622 on February 8, a whopping gain of 1400%.
Fetch.AI ($FET) was another AI token that rose in tandem with $AGIX. $FET put on 586% for the same time period, but if it was taken into account that its bottom was in late November 2022, its actual gain could be measured at 1068%.
However, both of these tokens, plus most of the other AI tokens descended from their dizzy heights in early February, first descending precipitously, and then grinding down over the last 3 months to arrive at what could now be an AI token bottom.
Technical indicator bottomsWhen looking at technical analysis, the higher time frames give the much truer picture of price action. In this respect, the weekly Stochastic RSIs (a momentum indicator) have bottomed for some of the AI tokens, implying that they are now extremely oversold, and with some of these a crossover has now taken place.
$AGIX was the first AI token to lift off, and started its rapid breakout on late Thursday afternoon. It surged 30% in a period of only 24 hours, hitting $0.32. Since then $AGIX has come back to touch the trendline it broke out of - a trendline that has been steadily following downwards since March 18.
A cross up has taken place on the weekly RSI and it now remains for the oscillator to cross the 20 line to really signal the start of the strongest momentum that can send AGIX back to its double top at $0.66.
Many of the other crypto/AI-related tokens are likely to follow suit and it will be very interesting to note which of them might take the lead from SingularityNET.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
