The Federation of Artificial Superintelligence (FET) is up 75% in a month. Here’s why.

Artificial intelligence-themed tokens have surged in the past 24 hours, posting double-digit gains as markets digest the Federal Reserve’s 50 basis point rate cut.

The Artificial Superintelligence Alliance (FET), a consortium of Fetch.ai, Ocean Protocol, and SingularityNET, had a huge performance today. The FET token surged by about 15% in the last 24 hours, reaching $1.54 on September 19.

Let’s take a quick look at some of the factors that affect FET performance.

AI Narrative Drives FET Price Up

AI-focused tokens have seen significant gains in 2024, fueled by the emergence of various AI projects and the unprecedented performance of Nvidia’s stock price.

FET’s rally on September 19th is similar to the rally in Nvidia stock, which rose 5.25% to $119 over the past 24 hours, according to data from Yahoo Finance.

The token also saw an uptrend ahead of a crucial vote on a governance proposal that will see alliance members decide whether Cudos (an AI computing platform) will join the Artificial Superintelligence Alliance (ASI Alliance).

According to the ASI Alliance, the merger is subject to approval from both project communities, with a governance vote scheduled to take place between September 19 and September 24.

Against this backdrop, FET has outperformed the broader cryptocurrency market, rising more than 108% since the beginning of the year and 558% over the past 12 months.

By comparison, Bitcoin (BTC) is up 49% year-to-date and 140% over the past year, while Ethereum (ETH) is up 6.7% year-to-date and 48% over the past 12 months.

relevant: Fantom (FTM) price has surged 40% in a month. What’s behind this trend?

Traders are expecting a “bullish” outlook on FET’s changing market structure.

According to data from Cointelegraph Markets Pro and TradingView, the FET price appears to have bottomed out on August 5 at $0.70, following a decline along with the broader altcoin market. The price has since recovered to its current levels, rising more than 120% since August 5, breaking a “multi-month” downtrend, according to popular crypto analyst Rekt Capital.

“FET has broken its multi-month downtrend, made a proper retest, and looks ready to revisit the red Range High resistance line over time.” FET/USD Weekly chart. Source: Rekt Capital

Fellow analyst Nebraska Gunner explains that FET price has broken out of an inverse head and shoulders (IH&S) pattern and a major break above the resistance level could signal a huge upside move.

The IHS pattern is a reversal technical setup that forms after a long downtrend. It consists of a head, left shoulder, and right shoulder, which are inverted and positioned below the neckline.

A breakout and close above the neckline indicates a reversal in the downtrend.

“As long as the neckline holds support, I think this price range can move higher towards the $1.90-$2.15 resistance level,” Nebraskangooner added.

That would increase the odds of a breakout towards the pattern’s technical target of $2.30, which would represent a 50% upside from current prices.

Doji added that the “market structure is changing” and that he was “very bullish” on higher time frames.

This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.