- Recently plunging to three-month lows at $1.12, Fetch.ai quickly bounces back to $1.62.
- Awaiting the merger between three AI coins in July, traders are divided into two camps.
- Taking on Nvidia’s surge past Microsoft, the AI sector enjoys double-digit gains.
The artificial intelligence crypto token Fetch.ai (FET) emerged as the top gainer of the day on Thursday, July 20, 2024. As several large market-cap AI tokens have been among the first out of altcoins to successfully elude the bearish grip this week, FET remains the second-largest asset in the AI crypto space, reclaiming a $4 billion market capitalization amidst today’s 27.7% upswing.
Judging by the latest blockchain stats, much of this bounce strength came from Derivatives markets, where FET enjoyed a 209.99% uptick in trading volume. FET’s Open Interest (OI) rate, used to assess the total amount of unsettled leveraged positions, also increased by 95%, depicting a renewed interest in the token among Derivatives traders.
Artificial Superintelligence Alliance Unites Three AI Coins
The highly anticipated Artificial Superintelligence Alliance (ASI), slated for a July 15, 2024 launch, will merge three already-launched AI tokens. While the original plan was to rebrand FET to ASI on June 11, 2024, the merging date was pushed to mid-July, as per Fetch.ai’s official announcement.
Joined by Ocean Protocol (OCEAN) and SingularityNET (AGIX), FET will be automatically converted to the new token hassle-free. This was cleared up in Artificial Superintelligence Alliance’s official X Spaces, where Fetch.ai’s CEO Humayun Sheikh assured holders that all coins held on the chain’s mainnet would be converted to the ASI token.
Before dissolving FET next month, traders are visibly divided into two camps. Short-sellers of FET have been hit with subsequent liquidations in the latest 24-hour time frame, accounting for $762.45K out of $848.36K liquidations. Binance’s customers seem to be bearish on FET’s future with short FET positions outsourcing long leveraged positions by over 10%.
The overall long versus short ratio for FET remains positive at 1.0129, while OKX’s crypto traders stand out as most bullish on FET with a ratio of 1.32, according to CoinGlass on-chain data. The other two tokens in The Artificial Superintelligence Alliance merger performed similarly to FET, as both AGIX and OCEAN saw 23% and 21% daily gains, respectively.
Fetch.ai’s Bounce Back: Grist For Crypto’s Gossip Mill?
Bolstered by the recent success of artificial intelligence-focused businesses like Elon Musk’s xAI advancements and Nvidia’s newly-claimed status as the most valued enterprise at a market cap of $3.33T. Surpassing Microsoft, Nvidia’s success contributed to the plethora of other positive events for the AI sector, boosting related coin prices.
Aside from these outside factors, FET’s vision of real-world use cases grabbed the attention of crypto aficionados. According to blockchain intelligence platform Santiment, Fetch.ai’s social dominance has recouped the levels of March 2024.
At 0.96%, this means that slightly below 1% of all social media discussions revolve around FET, while the AI coin’s Chaikin Money Flow (CMF) steadily increased since Monday, June 17, 2024. The CMF metric is used to assess whether the token is in the accumulation or distribution phase.
If the CMF index is steadily positive and rising, it hints at FET’s market strength, driven by large investors pouring money into the cryptocurrency. In contrast, FET’s Relative Strength Index (RSI) pointed to 75 on the 4-hour charts, meaning that the token is trading in a substantially overbought condition.
On the Flipside
- The massive dip to $1.12 could be partly ascribed to the misinterpretation of the warning prompt on the FET/USDT pair on Binance, reminding their traders about Fetch.ai’s delisting on July 1, 2024.
Why This Matters
As artificial intelligence becomes a pivotal part of society, the incorporation of AI algorithms into the cryptosphere expands the opportunities for both sectors.
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