Leading artificial intelligence (AI) cryptocurrency Fetch.ai (FET) shot to the top of the gainers chart on Thursday. The 28% rise happened just a few days before FET was set to join with other AI tokens to form the long-awaited Artificial Superintelligence Alliance (ASI).
There seem to be a lot of good reasons for the sudden rise in the price of FET. The general AI market is growing quickly thanks to Elon Musk’s recent xAI breakthroughs and Nvidia’s recent claim to being the most valuable company in the world. This good mood seems to be spreading to cryptocurrencies that focus on AI, with FET being the biggest winner.
Fetch Sees Trading Surge
What’s making things worse is that the Artificial Superintelligence Alliance is about to start up on July 15th. There has been a lot of talk in the crypto world about this merger, in which FET will work with Ocean Protocol (OCEAN) and SingularityNET (AGIX). The hope of a combined force in the AI crypto space is probably one reason why FET is currently going up in value.
A lot of trading is going on, which makes the picture even better. The selling volume of FET on derivatives markets went up by a huge 210%, which shows that traders are once again interested. Also, short-sellers are having to sell a lot of their shares, which suggests a short-term squeeze and a possible change in the trend in favor of FET.
But not everyone is sure about FET’s long-term chances. The token’s rapid rise has caused its Relative Strength Index (RSI) to reach 75 on the 4-hour charts. This suggests that it may be becoming overbought. This means that there might be a correction coming up, since investors who got in early might want to cash out.
Also, it looks like users have mixed feelings. There have been more discussions about Fetch on social media than at any time since March 2024, but many users on Binance, a major cryptocurrency exchange, don’t think the token will have a bright future in the long run. This difference shows that there might be a gap between new buyers and more experienced traders.
A new event on Binance has made things even less clear. A warning message about Fetch being delisted on July 1 (later confirmed to be the delisting of the FET/USDT trade pair) caused the price of the token to drop for a short time. This event makes it clear that the planned merger could cause confusion and instability.
