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Revisiting Our AI Crypto Trades
Back on June 19th we highlighted the AI crypto trade when we thought the sector was bottoming. See that post here.
Turns out we were pretty dead on. Let’s revisit those 5 trade suggestions.
The first was TAO. We said, “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.”
At the time TAO was trading at $298. The token traded all the way down to $194, a bit more than we anticipated, but if your bid was filled at $250, you’re sitting on a gain of almost 21% today.
TAO is still a buy here. Look at the massive increase in volume over the past two months!
Next was INJ. We said, “INJ dropped right into the support/supply zone. Bids could be placed staggered between $18.50-$20.”
INJ traded down to $16.85, meaning your $18.50 bid would have been filled, and today you’re sitting on a gain of 45%, with token at $24.66 as this is being written.
If INJ can hold above $22 it should move higher. Once it flips $30 we should see a strong push higher.
Our third token pick was RNDR. We said, “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.”
RNDR hit a low of $5.64, bringing it perfectly into our buy zone. If you bought the $5.75 level you are looking at a gain of 14% at a price of $6.58 today.
If RNDR can push through $7 and then $8, we should see a strong move to $10.
Our fourth token was AR. We said, “AR dropped into the support/supply zone. Bids can be layered in the $21.25-$24 range.”
AR traded down to $19.76, meaning your bid at $21.25 would have been filled. Your gain as of today is about 36%, with the token at $29.17 as of this writing.
If AR can get through $30 convincingly, it should move quickly to $40.
Last but not least was FET. We commented that, “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.
FET hit a low of about $1.06. If you got filled on the $1.25 bid (since we didn’t make it down to $1 we are using the higher bid as our baseline) you are sitting on a gain of 13% at $1.44 today.
FET should trade up to $1.70 from here, and if it gets through that level it’s on to $2.05 most likely.
Be careful with FET however, as they are merging with OCEAN protocol and not all exchanges are supporting the merger token.
The Application of AI in Crypto Protocols
This is one of our favorite sectors in crypto. In our opinion all of these are going to be much, much higher by the time this bull runs it’s course. Having some exposure is a must.
The integration of artificial intelligence (AI) into cryptocurrency protocols is revolutionizing the crypto space, enhancing security, optimizing trading strategies, and enabling more efficient blockchain operations. Here’s an overview of how AI is being applied in various aspects of crypto protocols:
Security and Fraud Detection
AI plays a crucial role in bolstering the security of cryptocurrency networks. By utilizing machine learning algorithms, AI systems can detect unusual patterns and anomalies in transaction data, which may indicate fraudulent activities. For example, AI can analyze vast amounts of transaction data in real-time to identify and flag potentially malicious transactions or wallet addresses associated with hacking attempts. This proactive approach helps in preventing security breaches and safeguarding users’ assets.
Smart Contract Auditing
Smart contracts, which are self-executing contracts with the terms directly written into code, are fundamental to many crypto protocols. AI can enhance the reliability and security of smart contracts by performing automated code audits. Machine learning models can be trained to identify vulnerabilities and bugs in smart contract code, reducing the risk of exploits. This ensures that the contracts execute as intended, without security flaws.
Predictive Analytics for Trading
AI-driven predictive analytics are transforming cryptocurrency trading. Machine learning models can analyze historical price data, market trends, and external factors to forecast price movements and market conditions. Traders use these predictions to make informed decisions, enhancing their trading strategies and potentially increasing their returns. Additionally, AI-powered trading bots can execute trades based on predefined criteria, optimizing trading efficiency and minimizing human error.
Blockchain Optimization
AI can improve the efficiency and scalability of blockchain networks. One application is in the optimization of consensus algorithms. For instance, AI can help in predicting network traffic and adjusting the consensus mechanism dynamically to ensure faster transaction processing and reduced latency. Furthermore, AI can aid in managing the energy consumption of blockchain networks by optimizing the processes involved in mining and validating transactions.
Enhanced User Experience
AI enhances user experience in crypto platforms through personalized recommendations and customer support. Natural language processing (NLP) enables AI-driven chatbots to provide real-time assistance to users, answering queries and resolving issues efficiently. Additionally, AI algorithms can analyze user behavior and preferences to offer tailored investment suggestions, improving user engagement and satisfaction.
Regulatory Compliance
Regulatory compliance is a significant challenge in the crypto industry. AI can streamline compliance processes by automating the monitoring and reporting of transactions. Machine learning models can ensure that all transactions adhere to relevant regulatory requirements by analyzing transaction data against compliance criteria. This reduces the burden on compliance teams and minimizes the risk of regulatory breaches.
Conclusion
The application of AI in crypto protocols offers numerous benefits, from enhancing security and efficiency to optimizing trading strategies and ensuring regulatory compliance. As AI technology continues to evolve, its integration with cryptocurrency protocols is likely to deepen, driving further innovations and improvements in the crypto space. By leveraging the capabilities of AI, the cryptocurrency industry can achieve greater security, scalability, and user satisfaction, paving the way for broader adoption and growth.
If you have any suggestions on AI crypto projects we should be watching, please send them our way! As always, good luck and happy trading!
As always, trade safe and use sound money management with your positions.