OpenAI’s latest funding could be a major development for the Sam Altman-led company. However, for AI-powered coins including Bittensor (TAO) and Artificial Superintelligence Alliance (FET), it’s a classic “sell the news” event.
On previous occasions, developments like this have triggered a substantial increase in the prices of these altcoins. But today, it is not the same as the prices of FET and TAO are falling. But what comes next after OpenAi’s fundraising?
OpenAI's value increases, but TAO continues to go against the trend
On October 2, Open AI raised $6.6 billion from multiple investors. According to Reuters, Microsoft, the company’s largest backer, led the round. The report also highlighted a significant investment from Nvidia, the world’s leading supplier of graphics processing units (GPUs).
“The financing was in the form of convertible notes, and the conversion to equity is contingent upon a successful structural change to a for-profit company that would no longer be controlled by the non-profit board and the removal of the cap on returns to investors,” the Reuters report said.
Read more: How to invest in Artificial Intelligence (AI) cryptocurrencies?
However, unlike previous times when news triggered a surge in the market cap of AI cryptocurrencies, this did not happen. At the time of writing, TAO’s price has declined by 8.55% while trading below $500. FET is another AI crypto affected by the development, with its value plummeting by almost 7%.
Bittensor Price Analysis. Source: TradingView
Three days ago, TAO showed a readiness to move up towards $700. However, according to the Balance of Power (BoP) indicator, the strength of buyers has weakened. This decline gives the advantage to sellers.
Therefore, TAO could face another drop. With TAO priced at $498.30, the Fibonacci retracement indicator suggests that the token, which is one of the AI cryptos with the largest market cap, could fall to $465.70.
Meanwhile, TAO could rebound if sellers run out and bulls capitalize on the fatigue. In such a circumstance, the altcoin’s value could jump to $617.90.
FET price may fall again
The situation of FET is not exactly different from that of TAO. At the time of writing, FET is priced at $1.40 and has now fallen below the 20-day Exponential Moving Average (EMA). The EMA attaches great importance to recent price trends to gauge the direction of the trend.
When the price is above the EMA, the trend is bullish. However, since the AI crypto’s value is below the threshold, it indicates a bearish trend. Considering the altcoin’s position, it may be challenging to recover. Instead, the FET price may continue the downward trend.
Read more: 5 Cryptocurrency Projects That Use AI in Their Systems
FET Price Analysis. Source: TradingView
If this happens, the token could drop to $1.22. However, FET could rise to $1.74 if AI cryptos eventually experience a bullish reversal, largely due to increased capital inflows.
The article OpenAI’s $6.6 Billion Fundraising Impacts AI Cryptocurrencies appeared first on BeInCrypto Brasil.
