Leading artificial intelligence (AI) cryptocurrency Fetch.ai (FET) rocketed to the top of the gainers table Thursday. Just days before FET’s planned merger with other AI tokens into the highly awaited Artificial Superintelligence Alliance (ASI), the 28% rise takes place.
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Bullish Brew: AI Market Momentum And Upcoming Alliance Fuel FET’s Rise
The current increase in FET’s price seems to be the result of several favourable elements interacting. Driven by the success stories of Elon Musk’s xAI developments and Nvidia’s recent assertion to be the most valuable business in the world, the general artificial intelligence market is seeing a surge. With FET being a main benefactor, this good attitude seems to be spreading to cryptocurrencies with an eye towards AI.
The upgrade from the $FET Network to $ASI Network is coming soon. Now the question is, how soon? 🌋
In the latest 𝕏 Spaces session on the @ASI_Alliance account, @HMsheikh4, the CEO of https://t.co/g4CLYbPU8e and Artificial Superintelligence Alliance stated that those holding… pic.twitter.com/Eg3bAq8e9t
— GeoStaking (@GeoStaking) June 19, 2024
Fueling the fury is the approaching July 15th artificial superintelligence alliance launch. The crypto industry has been buzzing about this merger whereby FET will team with Ocean Protocol (OCEAN) and SingularityNET (AGIX). A cohesive force in the AI crypto scene is probably helping to explain the present optimistic attitude on FET.
That what we call a big bounce ! pic.twitter.com/O6Nczu83ip
— Sensei (@SenseiBR_btc) June 20, 2024
More notably, an increase in trade activities helps to support the great reputation. Rising sharply by 210%, FET’s trading volume in futures markets suggests the new curiosity of traders. Notable liquidations among short-sellers also point to a fleeting squeeze and maybe a trend turn around in FET’s advantage.
Overbought Territory And User Apprehension
Not everyone, nevertheless, is persuaded of FET’s long-term viability. The token’s explosive ascent has driven its Relative Strength Index (RSI) on the 4-hour charts to 75, indicating that it may be approaching overbounded territory. This implies that early buyers may be motivated to take gains, therefore suggesting a possible correction on hand.
User sentiment seems to be also conflicting. Although social media conversations about FET have reached levels not seen since March 2024, a sizable fraction of users on top cryptocurrency exchange Binance appear to be bearish in the long run. This difference draws attention to a possible gulf between more experienced traders and casual investors.
To further add to the confusion is a recent occurrence at Binance. The price of the token temporarily dropped following a warning alert on FET’s delisting on July 1st (later explained to be the delisting of the FET/USDT trading pair). This episode emphasises the possible ambiguity and volatility around the forthcoming merger.
Featured image from Elegant Themes, chart from TradingView