- Leading AI and big data-based cryptocurrencies such as Near (NEAR), Render (RNDR), and Bittensor (TAO) observed notable price gains, with values climbing by 8%, 5%, and 7% respectively.
- However, on-chain indicators show a lack of genuine market demand, raising concerns about the sustainability of these gains.
The artificial intelligence (AI) token market has rallied following Bitcoin’s recent surge above $71,000. Over the past 24 hours, the AI token market capitalization has increased by 5%, with trading volume up by 20%, according to CoinMarketCap. One of the major reasons behind the rally in the AI coins is the magnificent result delivered by Nvidia, driving the stock price higher. On Wednesday, Nvidia surged past the $3 trillion market cap overtaking Apple Inc.
Leading AI and big data-based cryptocurrency assets, including Near (NEAR), Render (RNDR), and Bittensor (TAO), have seen their values climb by 8%, 5%, and 7%, respectively, in the past 24 hours.
An analysis of key momentum indicators, which track buying and selling activity, indicates that the price increases have not been driven by genuine market demand but rather reflect the broader cryptocurrency market’s uptick.
For example, NEAR’s Relative Strength Index (RSI) was 52.29, and its Money Flow Index (MFI) was 26.96. These combined readings suggest that while market sentiment remains mostly neutral, there has been a significant outflow of money from the NEAR market. This points to the possibility of NEAR losing its recent gains as selling pressure builds.
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For RNDR, the Chaikin Money Flow (CMF) indicator was below the zero line at the time of writing. This indicator measures the flow of money into and out of an asset’s market. A value below zero signals market weakness, suggesting an increase in selling pressure and potential capital outflow. As of this writing, RNDR’s CMF was at -0.05.
Additionally, RNDR’s Aroon Up Line (orange) was at 0%, indicating a weak uptrend. The Aroon Indicator measures trend strength and potential price reversal points. When the Aroon Up Line is close to zero, it implies that any market uptrend is weak and that the most recent high was reached some time ago.
Similarly, TAO’s performance showed that its price trading was close to its 20-day exponential moving average (EMA). When an asset’s price hovers near this key moving average, it suggests market consolidation with the price lingering within a range. This was further confirmed by TAO’s declining Average True Range (ATR), an indicator of market volatility.
On the other hand, altcoins and meme coins continue to enjoy the surge. As per the recent analysts from Santiment, prominent crypto namely Cardano (ADA), Shiba Inu (SHIB), and Jasmy (JASMY), are currently witnessing notable surges. These spikes in value appear to be closely correlated with heightened interest from large-scale investors, commonly referred to as whales.
Notably, the volume of transactions exceeding $100,000 on each of these respective networks has more than doubled over the course of this week when compared to their typical averages observed in 2024. This surge in high-value transactions is being interpreted as a strong indicator of accumulation within these cryptocurrency ecosystems.
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