Bittime – Since the start of May there has been a nearly 40% surge in AI tokens, led by RNDR . The question is can RNDR lead this surge for the remainder of May?
AI Token Slumps but Not to All Time Low
The AI token experienced its most significant decline during the crypto market correction that began in March, with a drop of up to 55% from its annual peak. In contrast to other asset groups, AI tokens did not create a higher low, but instead fell to a lower low in May.
Starting a Rally with RNDR
Despite the correction, AI tokens are currently experiencing a rally led by RNDR, with a 40% increase from its low point.
Breakout and Bullish or Bearish and Nyungsep
The fact that they are still trading inside resistance levels raises the question of whether they can break out and stage a trend reversal, or whether new lows will emerge instead.
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AI Token Rally Just Behind Memecoin
Memecoin has been the best performing narrative so far this year. In March, they led the crypto market, followed by Gaming Token. However, they underperformed in April, while major Layer-1 tokens thrived.
This fuels the opinion that more speculative investments such as memecoins outperform during positive market moves, while later more established projects outperform them during corrections.
Memecoin Performance Soars Compared to Other Narratives
Custom Daily Chart Credit by TradingView
This hypothesis is strengthened when looking at the recovery since May 5. The memecoin group (red) has risen over 30%, followed by the AI token group at 21% (white). No other narrative increased by double digits. Interestingly Layer-1 coins are the worst performers so far in May.
Although AI tokens are not as speculative as memecoins, their market capitalization is smaller compared to other sectors such as Layer-1 or Ethereum betas.
Of the AI token group, only NEAR Protocol is in the top 20 cryptos based on market capitalization.
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Who is Leading the AI Token Surge?
The AI token family has rallied nearly 40% since its May 1 low, hitting a descending resistance trend line that has been running for 49 days. The reason for the difference in increases relative to the coin narratives in the previous section is that the narrative comparison measures price from the daily close rather than the absolute axis low of the narrative.
The trend line has been in place since the correction began on March 18. So, a breakout from it would confirm the correction is over.
Although there is no breakout yet, the price action remains bullish due to the retake of the $60 horizontal support and the 0.618 Fibonacci retracement support level.
AI Token Chart Comparison by TradingView
Looking at the price movements of the tokens that make up this group, RNDR is the clear leader (blue), followed by GRT (yellow).
Due to the ASI merger, AGIX & OCEAN prices will likely remain the same at least until their merger completes on May 24. Also, FET is likely to maintain a price of 2.43 times that of AGIX & OCEAN. This explains their very similar rates of increase.
Also read ASI Token: Definition, Mechanism and Benefits for the Artificial Intelligence Alliance
Interestingly, NEAR showed the smallest recovery since May 1, despite being the biggest beneficiary of AI tokens in April. One reason could be that NEAR bottomed on April 13 and then created a higher low in May, unlike other tokens that bottomed on May 1.
RNDR Double Bottom Leading to Breakout?
RNDR price action shows many bullish signs, starting with a double bottom pattern created between April 13 and May 1. The double bottom combined with bullish divergence on the daily RSI and MACD, increases its significance.
RNDR to USDT analysis by ALDRIN TAHIRI
After the double bottom, RNDR managed to break out from the descending resistance trendline and then re-reached the 0.382 Fib retracement resistance level and the horizontal resistance area at $9.15. On top of this bullish price action, the RSI increased above 50 while the MACD moved above 0.
So, all signs point to continued RNDR price increases. If this happens, the next resistance will be at $12, a 20% increase from the current price.
Conversely, a close below $9.15 would jeopardize the uptrend. RNDR could decline and fall 25% and validate the resistance trendline at $7.50.
GRT Pattern is Bullish but Still Inside Resistance
GRT price movements have many similarities with RNDR. More specifically, both have created a similar double bottom pattern combined with a bullish divergence (green). GRT's double bottom points to a breakout of its descending resistance trendline.
GRT to USDT analysis by ALDRIN TAHIRI
However, the main difference lies in the fact that GRT has not broken out of the $0.30 horizontal resistance area. If successful, the next resistance will be at $0.42, 35% above the current price.
On the other hand, failure to exit could lead to a re-test of the resistance trend line at $0.25. While this would not invalidate the hypothesis that the correction is over, it would jeopardize it if GRT closes below the resistance trendline.
FET Shows the Weakest Price Action of the Three
Since FET will serve as a reserve token for ASI, its price action can determine the price of OCEAN & AGIX. So, the analysis can be used as a reference for both OCEAN & AGIX.
FET price movement is similar to GRT, but slightly less bullish. The reason is that the double bottom pattern is not combined with bullish divergence on the RSI or MACD.
FET to USDT analysis by Aldrin Tahiri
Price action shows that FET created a double bottom pattern and broke out from a descending resistance trend line. However, similar to GRT, the price has not broken out of the $2.50 resistance area. If this happens, it will confirm a bullish trend. This could lead to an increase to the next resistance at $3.05, a 20% increase. Due to its inability to break out and absence of bullish divergence, FET's bullish outlook looks less promising compared to RNDR and GRT.
AI Token Is at an Important Level
Although there has been a significant increase since May 1, the AI token family is still trading at critical resistance levels. So, confirming a bullish trend reversal requires further validation. This is also visible when looking at the individual price movements of various AI tokens. RNDR is an exception, which apart from leading AI tokens has also broken out of its main resistance area.
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Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
The Future of Spatial Computing, Rendering (RNDR), and XR
AI, FET, AGIX, and OCEAN Token Merger: Facts to Know
The Graph (GRT) & Optimism (OP): Masuk Titik Make or Break?
Altcoins are Moving, These 3 Tokens Are Predicted to Make Profits Up to 100 Times!
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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