Fetch.ai (FET), the leading artificial intelligence (AI) crypto, rose to the top of the gainers chart on Thursday. The 28% surge comes just days before FET’s planned merger with other AI tokens in the much-anticipated Artificial Superintelligence Alliance (ASI).
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Bullish Brew: AI Market Momentum and Alliance Fuel FET’s Upcoming Rise
The recent increase in the FET price seems to be a combination of good things. The mainstream AI market is experiencing growth, fueled by the success stories of Elon Musk’s xAI development and Nvidia’s recent claim to the title of the world’s most valuable company. This positive attitude seems to be spreading to AI-focused cryptocurrencies, with FET benefiting the most.
Upgrade from $FET Network to $ASI The network is coming soon. Now the question is, how fast? 🌋
In the latest session 𝕏 of Vacancies at @ASI_Alliance account, @HMsheikh4The CEO of the Artificial Superintelligence Alliance said that those holding… pic.twitter.com/Eg3bAq8e9t
– GeoStaking (@GeoStaking) June 19, 2024
Adding fuel to the fire is the upcoming launch of the Artificial Superintelligence Alliance on July 15. This merger, which will bring FET together with Ocean Protocol (OCEAN) and SingularityNET (AGIX), has been creating significant buzz in the crypto community. The promise of integrated power in the AI crypto space is likely contributing to the current boom around FET.
That’s what we call a big bounce! pic.twitter.com/O6Nczu83ip
– Sensei (@SenseiBR_btc) June 20, 2024
Also reinforcing the positive outlook is the increase in commercial activity. Derivatives markets experienced a massive 210% increase in FET trading volume, reflecting renewed interest from traders. Additionally, short sellers are facing heavy liquidation, suggesting a short-term squeeze and a possible trend reversal in favor of the FET.
Overbought Territory and User Concerns
However, not everyone is convinced of FET’s long-term prospects. The token’s meteoric rise has pushed the Relative Strength Index (RSI) to 75 on the 4-hour charts, indicating that it may be entering overbought territory. This suggests that a potential correction is imminent, as investors who bought early may be tempted to take profits.
Furthermore, user sentiment seems to be mixed. Although social media discussions surrounding FET have reached unprecedented levels since March 2024, a large portion of users on Binance, the leading crypto exchange, seem pessimistic about the long-term future of the token. This difference highlights the potential disconnect between casual investors and seasoned traders.
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Adding to the uncertainty is a recent incident at Binance. A warning message about the release of FET on the list on July 1 (which was later clarified to be the release of the FET/USDT trading pair) caused a temporary drop in the token’s price. This episode emphasizes the potential for confusion and volatility surrounding the upcoming merger.
Featured image from Good Themes, chart from TradingView
