Artificial intelligence-themed tokens have surged over the past 24 hours, posting double-digit gains as the market digests the US Federal Reserve’s 50 basis-point rate cut. 

Artificial Superintelligence Alliance (FET)—a consortium of Fetch.ai, Ocean Protocol and SingularityNET—is a star performer today, with its FET token surging approximately 15% in the last 24 hours to reach $1.54 on Sept. 19. 

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

AI narratives drive FET price higher

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

FET’s rally on Sept. 19, mirrors a rally in Nvidia stock price, which is up 5.25% over the last 24 hours to $119, according to data from Yahoo Finance.

The token also rallied ahead of an important vote on a governance proposal in which alliance members will decide whether Cudos, an AI computing platform, will become part of the Artificial Superintelligence Alliance (ASI alliance). 

According to the ASI alliance, the merger is subject to approval by the communities of both projects, with a governance vote scheduled to take place between Sept. 19 and Sept. 24.

Against this background, FET has outperformed the broader crypto market, rising more than 108% year-to-date and 558% over the past 12 months. 

In comparison, Bitcoin has risen 49% year-to-date and 140% over the last year, while Ether has rallied just 6.7% year-to-date and 48% in the past 12 months.
 

Traders “bullish” about FET’s shifting market structure

Data from Cointelegraph Markets Pro and TradingView reveals that FET price declined alongside the wider altcoin market, finding what appears to be a bottom at $0.70 on Aug. 5. The price has since recovered to the current levels, rising more than 120% since Aug. 5, breaking a “multi-month” downtrend, according to popular crypto analyst Rekt Capital. 

“FET has broken its multi-month downtrend, performed a decent retest attempt and looks poised to revisit the red Range High resistance over time.”FET/USD weekly chart. Source: Rekt Capital

Fellow analyst Nebraskangooner explained that FET price had broken out of an inverse head-and-shoulders (IH&S) pattern, suggesting a massive move upward if key resistances are broken.

The IHS pattern is a reversal technical setup that forms after an extended downtrend. It comprises a head, a left shoulder and a right shoulder that are upside down and placed below a neckline.

A breakout and close above the neckline completes the setup, indicating that the downtrend has reversed.

“I think this one can push to the $1.90-2.15 resistance area as long as the neckline holds as support,” Nebraskangooner added.

That will increase the odds of a break toward the pattern’s technical target at $2.30, which represents a 50% uptick from the current price.

“The market structure is shifting,” said Doji, adding that they were “very bullish” on higher time frames.

Source : Cointelegraph - Sep 19, 2024