- Fetch, which recently plummeted to a three-month low of $1.12, quickly rebounded to $1.62.
- Ahead of the merger of three AI coins in July, traders are divided into two camps.
- The AI sector is enjoying double-digit gains as Nvidia beats Microsoft.
Artificial intelligence cryptocurrency token Fetch.ai (FET) emerged as the top gainer of the day on Thursday, July 20, 2024. This is because several large market cap AI tokens were among the first altcoins to successfully avoid weakness. This week, FET remains the second-largest asset in the AI cryptocurrency space, regaining $4 billion in market capitalization amid a current 27.7% gain.
According to the latest blockchain statistics, most of the strength of this rebound came from the derivatives market, where trading volume for FET increased by 209.99%. FET’s open interest (OI) ratio, which is used to evaluate the total amount of outstanding leverage positions, also increased by 95%, indicating renewed interest in the token among derivatives traders.
Artificial Superintelligence Alliance integrates three AI coins
With its highly anticipated launch on July 15, 2024, the Artificial Superintelligence Alliance (ASI) will integrate three already launched AI tokens. The original plan was to rebrand FET to ASI on June 11, 2024, but the merger date was postponed to mid-July following an official announcement from Fetch.ai.
When Ocean Protocol (OCEAN) and SingularityNET (AGIX) join, FET will be automatically converted to new tokens without any hassle. This was addressed in the Artificial Superintelligence Alliance’s official
Before disbanding FET next month, traders were noticeably divided into two camps. FET short sellers have been hit by subsequent liquidations in the last 24 hours, accounting for $762.45K of the $848.36K in liquidations. Binance’s clients appear to be bearish on the future of FET due to short FET positions outsourcing more than 10% of their short leveraged positions.
According to CoinGlass on-chain data, FET’s overall long/short ratio remains positive at 1.0129, while cryptocurrency traders on OKX are the most bullish on FET with a ratio of 1.32. The other two tokens from the Artificial Superintelligence Alliance merger performed similarly to FET. AGIX and OCEAN both recorded daily gains of 23% and 21%, respectively.
Fetch.ai’s Bounce Back: Grist For Crypto’s Gossip Mill?
This has been further bolstered by the recent success of artificial intelligence-focused businesses, such as Elon Musk’s xAI advancements, and Nvidia’s newly asserted status as the most valuable company with a market capitalization of $3.33T. Nvidia’s success over Microsoft has contributed to a number of positive events for the AI sector, boosting prices of related coins.
In addition to these external factors, FET’s vision of real-world use cases has caught the attention of cryptocurrency enthusiasts. According to blockchain intelligence platform Santiment, Fetch.ai’s social dominance has recovered to its March 2024 level.
At 0.96%, this means that less than 1% of all social media discussions revolve around FET, while AI Coin’s Chaikin Money Flow (CMF) has been steadily increasing since Monday, June 17, 2024. The CMF metric is used to evaluate whether a token is centered around FET. You are either in the accumulation or distribution phase.
If the CMF index is consistently positive and rising, it suggests market strength for FET as large investors are pouring money into cryptocurrencies. In contrast, FET’s Relative Strength Index (RSI) read 75 on the 4-hour chart, meaning the token is trading at a significantly overbought level.
On the flipside
- The sharp drop to $1.12 can be partially attributed to Binance’s misinterpretation of a warning prompt for the FET/USDT pair. reminiscent Please inform traders about Fetch.ai’s delisting on July 1, 2024.
Why This Matters
As artificial intelligence becomes a pivotal part of society, integrating AI algorithms into cryptocurrency expands opportunities for both sectors.
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