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The crypto alt coin market has taken a complete bath since topping in March. Bitcoin’s slow sideways to lower grind and liquidity sweeps have really taken a toll on the alt coins.
The once high-flying AI coins, while performing better than other sectors, have not been spared. Take a look at these numbers:
TAO – 62% off the highs
INJ – 60% off the highs
RNDR – 43% off the highs
AR – 44% off the highs
FET – 58% off the highs
These five are some of the most well-known AI crypto tokens. The lesser-known names have fared even worse.
So, is it time once again to buy into the AI hype train? If you believe AI is here to stay, as we do, then you must have exposure to the sector. The time to buy any asset is when no one seems to want it. Is that time now?
Let’s look at some charts because as they say, a picture is worth a thousand words. You’ll see that all 5 of these charts look very similar.
The red rectangle at the bottom of the charts indicates zones of support or liquidity waiting to be bought. The ultimate buy signal technically would be a successful re-test of that red rectangular zone and a move out of it.
Let’s take a look at each of the 5 tokens we just highlighted above.
Let’s start with TAO. Bittensor is an open-source protocol that utilizes blockchain technology to create a decentralized machine learning network. This network enables machine learning models to train collaboratively and be rewarded in TAO according to the informational value they offer the collective. The ultimate vision of Bittensor is to create a market for artificial intelligence, allowing producers and consumers of this commodity to interact in a trustless, open, and transparent context.
As is the case with all 5 of these charts, we dropped right in that red rectangular support/supply zone and popped above it. TAO is considered an AI bellwether and if you’re looking for a token to be the foundation of your crypto AI portfoiio, this is your go-to. Bids could be staggered between $250-$280.
INJ is another AI leader. Injective is an interoperable Layer 1 blockchain designed for DeFi applications. It provides developers with on-chain financial infrastructure modules to build dApps such as decentralized exchanges, prediction markets, and lending protocols. Its decentralized cross-chain bridging infrastructure offers compatibility with most blockchains, including EVM chains like Ethereum and non-EVM chains like Solana.
INJ dropped right into the support/supply zone. Bids could be placed staggered between $18.50-$20.
RNDR is the token for the Render Network Foundation (The Render Network®). It is the leading provider of decentralized GPU based rendering solutions, revolutionizing the digital creation process. The network connects node operators looking to monetize their idle GPU compute power with artists looking to scale intensive 3D rendering work and applications to the cloud.
RNDR touched the top of the red rectangle support/supply box. It’s possible it corrects back into the box to take out some of the liquidity in that zone. Bids can be layered between $5.75-$6.50.
AR, the token for the Arweave network is like Bitcoin, but for data: A permanent and decentralized web inside an open ledger. Permanent storage has many applications: from the preservation of humanity’s most important data, to the hosting of truly decentralized and provably neutral web apps.
AR dropped into the support/supply zone. Bids can be layered in the $21.25-$24 range.
FET, the token for Fetch.ai is the first open network for AI Agents. AI Agents can connect, search and transact to form dynamic marketplaces, changing how economic activity takes place in the world.
FET traded down into the support/supply zone just like the other 4 tokens. Bids can be staggered between $1-$1.25. FET rebounded strongly, so it’s possible that it does NOT trade back into the zone.
Today’s market action in the AI tokens was very positive
We need to see the supports held. Volume was strong in many of the tokens, especially TAO and FET. For long-term traders, even buying the tokens here at market is likely to result in at least 50% returns, and if the alt coin market takes off again, the previous highs on these tokens should all be taken out. If you’re more nimble, or trading shorter term, then placing aggressive bids could get you in at even better levels.
History usually repeats in crypto, however this halving has been slightly different than previous halvings. The long-awaited BTC ETFs may be sucking all the air out of the room in a market that still lacks retail liquidity. With the ETH ETFs looking inevitable as well, that could further strain liquidity. In addition, literally thousands of tokens have been created and floated, also contributing to liquidity issues. For a great review of this take a look at this string on X:
Good luck, and good trading!