The AI ​​space has outperformed all other tokens over the past month, and FET is poised for a big rally.

The AI, DeFi, and memecoin sectors have outperformed Layer 1 and Layer 2 solutions over the past month. Leading the way were Fetch.AI [FET] and BitTensor [TAO], two stocks that have seen significant gains since August. With overall market sentiment remaining uncertain, traders are looking to prior narratives to gain traction.

While new stories may emerge later, if the market strengthens, artificial intelligence and memecoin are the most straightforward investments.

Price Action Analysis of FET and TAO

Since AI Coin is performing well, let’s check the price action of the FET and TAO pair.

Nvidia’s impressive quarterly earnings in August have bolstered confidence in AI coins, boding positively for the future of these assets.

For Fetch.AI, the price action in the FET/USDT pair points to potential gains. It recently broke out of an inverted head and shoulders pattern, which typically signals a bullish reversal.

Moreover, the Chaikin Money Flow (CMF) is trending upwards, indicating increased buying activity in the market. If this trend continues, the Bitcoin price could reach $2.21 by the end of the year or early next year.

Likewise, BitTensor also presents a bullish outlook. Recently, TAO encountered rejection at the $440 price level after sweeping liquidity through two equal highs.

However, TAO/USDT remains bullish as the price is filling the gap created by the significant wick.

TAO’s CMF is about to turn positive, indicating that funds are flowing into this AI asset. Additionally, the relative strength index (RSI) is currently in overbought territory.

While an overbought RSI can indicate a market correction, it often signals strong bullish momentum, especially in the case of TAO.

Futures Funding Rate

Another positive indicator is the recent change in Fetch.AI’s futures funding rate, which went from negative to positive.

This change indicates that more traders are holding long positions, which typically leads to an increase in the price of FET and other AI coins.

Rising funding rates mean that long traders are compensating short traders for maintaining their positions, which reflects increased demand for FET and its peers.

However, this scenario could increase the risk of liquidation of long positions if the market were to decline.

Coin comparison

In the investment choice between the two, FET seems to be the more favorable choice. In the past month, FET has risen by 71%, while TAO has risen by 28%.

Furthermore, FET’s market cap is $3.79 billion, higher than TAO’s $2.46 billion. Therefore, FET’s volume-to-market cap ratio is 11.65%, while TAO’s is 6.54%.

FET’s higher volume-to-market cap ratio suggests it may be a safer investment, especially amid price volatility.

The artificial intelligence sector, led by FET and TAO, shows potential for growth.

Amid favorable market conditions and positive price action, these tokens should be kept a close eye by traders and investors alike in the evolving cryptocurrency landscape.

As AI currencies continue to gain traction, both FET and TAO could offer valuable opportunities for those looking to invest in this dynamic market.

And FET is currently in a bull run with its price ranging between $1.49 and $1.57. The token has seen incredible growth, rising by more than 67% in the past month alone. Despite entering the overbought zone with an RSI of over 72, FET is still attracting strong attention. If the bulls are able to break through the $1.65 resistance, FET could target $2.01, which means its price could rise by 34% from its current highest range. With continued bullish momentum, FET could exceed expectations and deliver solid returns in the next rally.