Fetch.AI Faces Market Turmoil Amid ASI Token Merger Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)— Fetch.AI has embarked on a merger under the Artificial Superintelligence Alliance (ASI) that involves integrating OCEAN and AGIX tokens into FET. Following the merger news and rebranding efforts, Fetch.AI’s price saw a sharp decline.
As part of phase 1, deposits and withdrawals of OCEAN and AGIX have ceased, with delisting from exchanges underway. Despite these ambitious plans, Fetch.AI experienced a notable market reaction.
ASI Integration’s Impact on FET Price
The ASI integration, though a strategic move to consolidate AI resources, had an immediate but negative impact on FET’s market value. Following the merger announcement, FET’s price dropped by over 9%, indicating a sell-off among investors.
The reaction reaction is reminiscent of the market’s response to earlier merger delays, which the teams attributed to logistical and technical challenges. Moreover, the sudden price decline suggests that investors might be wary of the merger’s execution and its implications for the future.
Supporters rejoiced over the ASI integration news, but FET price was not too happy.
Major exchanges such as Kraken and Coinbase’s decision not to support the ASI token migration adds to the uncertainty. These exchanges require users to manually migrate their tokens, which could complicate the process and deter participation.
The lack of comprehensive support hints at possible underlying concerns about the merger’s complexity and feasibility.
Despite these hurdles, the ASI alliance, including Fetch.AI, SingularityNET, and Ocean Protocol, aims to create a robust decentralized AI ecosystem. However, the market’s critical response underscores the importance of clear communication and effective implementation.
The decline in Fetch.AI price post-merger highlights the need for ongoing transparency and reassurance from the ASI alliance. If not, the merger could fail and nuke Fetch.ai’s credibility and market, along with those of the other two tokens involved.
FET Price Fails To Rally
FET prices have been in a free fall, and the lack of a positive reaction following the ASI integration highlights the market sentiment over the news. The lack of clarity has likely created FUD in the market, prompting participants to dump their tokens.
FETUSD daily price chart with RSI. Source: Tradingview.com
Following the ASI integration going live on July 1, FET price dropped nearly 10% and has crabbed since then. If the sell-off continues, the Fetch.AI token price could drop to the support near $1.15. Failure of immediate support level would likely result in the Fetch.ai token testing the support near $1.
However, a recovery rally from here would involve FET price facing off against the resistance level near $1.44. Moreover, flipping the immediate resistance could help the AI crypto token rally to the 200-day EMA (green wave) resistance near $1.7 before correcting.
The relative strength index for the Fetch.ai token remained neutral, with a score of 39.63 on the daily charts.
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