The cryptocurrency market has seen AI, DeFi, and memecoins surpass traditional Layer 1 and Layer 2 solutions in recent weeks. Leading the charge in the AI sector are Fetch.AI (FET) and BitTensor (TAO), which have captured investors’ attention. The rising interest in AI, coupled with Nvidia’s impressive quarterly earnings, has fueled the strong performance of these two coins.
Fetch.AI (FET) Price Action
Fetch.AI has demonstrated notable price movement in the FET/USDT pair, recently breaking a reverse head and shoulders formation—a bullish signal that typically indicates a shift from bearish to bullish trends. This breakout is being viewed as the beginning of a potential strong upward trend, signaling exciting opportunities for investors.
AI Coins Rallying: Market Signals to Watch
The Chaikin Money Flow (CMF) indicator is pointing towards increased buying interest, further boosting the outlook for FET. With momentum building, some analysts predict that FET could reach $2.21 by the end of the year or in early 2024, making it a coin to closely monitor.
BitTensor (TAO) in a Bull Market
Similarly, BitTensor (TAO) is showing bullish signs despite being rejected at the $440 level in the TAO/USDT pair. The market remains optimistic, expecting the price to continue moving upward and filling the gap created during its previous rise.
The CMF indicator for TAO also points to positive inflows, while the Relative Strength Index (RSI) shows the coin in overbought territory. Although a correction could occur, the strong bullish momentum is hard to ignore, making TAO’s price movement another key factor for investors to watch.
FET Outpaces TAO in the AI Coin Race
Comparisons between Fetch.AI and BitTensor have become a hot topic among investors. Over the past month, FET has posted an impressive 71% gain, outperforming TAO’s 28% increase. FET also holds a larger market cap of $3.79 billion, compared to TAO’s $2.46 billion valuation.
FET’s volume-to-market cap ratio stands at 11.65%, while TAO’s is recorded at 6.54%. This suggests that FET may be a safer bet against price volatility, with its higher trading volume signaling strong market interest.
Futures Funding Rates and Risks
FET’s futures funding rates have recently flipped from negative to positive, signaling growing interest in long positions. This trend could drive prices even higher for FET and other AI coins. However, investors should remain cautious, as sudden market drops could lead to liquidations, particularly for those holding long positions.
As reported by The Bit Journal, AI coins like FET and TAO have gained significant traction, but market uncertainty remains. Both coins show strong growth potential, but investors must consider the risks associated with the volatile crypto market.
