Fetch.AI (FET) has set new local and 2023 highs, reaching over 30 cents per FET in a swift 20% intraday move. While some profit-taking has kicked in, the “AI arms race” heating up is causing AI-adjacent cryptocurrency tokens to spike higher.
FET could be climbing in tandem with ChatGPT reaching an important user base milestone Here is a closer look at FETUSD charts and related technicals to get a sense of where the thriving AI token could go next.
ChatGPT Reaches 1 Million Users In 2 Months, Creating AI “Arms Race”
The undeniable potential of OpenAI’s ChatGPT has created intense interest in artificial intelligence, and its helping to drive AI-related crypto tokens to significantly higher prices. The New York Times says that the program has created an “arms race” in AI, where the entire tech world all at once rushes to harness its power, or risk being completely disrupted.
Reports circulated yesterday that the now-famous AI chatbot surpassed more than 100 million active monthly users in only two months since launching. For comparison sake, UBS analysts say it took Instagram 30 months to reach the same feat, with TikTok taking nine months.
FET has had a monster rally on the heels of the success of ChatGPT | FETUSD on TradingView.com
Fetch.AI has no affiliation with OpenAI or ChatGPT, but has benefited from the greater categorical trend. The currently 139th cryptocurrency by market cap is up more than 15% currently, with a high of 21% for the day. This only adds to a 269% year-to-date rally and a 529% recovery from lows set in late November.
Despite all this upside, Fetch.AI remains down by 73% from its 2021 all-time high. Former highs of over $1.26 are roughly another 269% from here.
Fetch.AI (FETUSD) Adds Another 20%+ To More Than 260% 2023 Rally
Fetch.AI has posted shocking returns to start the year and since the local bottom. It continues to outperform the broader cryptocurrency market alongside other AI tokens. But after an abrupt rally, could the AI-linked crypto token be ready to pull back?
In a bullish scenario, FETUSD monthly blasts through the middle-line on the Bollinger Bands – a 20-month simple moving average – and makes a run for the upper band located near former highs. In a bearish scenario, FET is rejected at resistance. The rally could also slow down and price consolidate below the median in a more neutral outcome.
FET has reached monthly resistance according to the Bollinger Bands | FETUSD on TradingView.com
The inflection point in FETUSD is also visible on the weekly timeframe, which has triggered a perfected TD9 sell setup using the TD Sequential. The setup is appearing just below TDST resistance (red line pictured below). Although the signal supports selling FET after an extended rally, a failed sell signal is a powerful buy signal.
Take note of the three previous instances FETUSD weekly charts resulted in a perfected sell setup. Two out of three barely led to a pullback and FET kept on climbing, while the third resulted in longer-term top and a brutal 95% collapse from peak to trough.
Will the AI trend cool off, or continue to heat up? | FETUSD on TradingView.com
Will FET make it three out of four times that it smashes through resistance, driven by an increasingly strengthening AI narrative? Or will the AI crypto token finally suffer a serious pullback?
I asked #ChatGPT to briefly explain @Fetch_ai to use as an example in an article. $FET is up 250%+ YTD.
Do we agree with the results? pic.twitter.com/JbT3ltCaHr
— Tony “The Bull” (@tonythebullBTC) February 3, 2023
@TonyTheBullBTC on Twitter or join the
TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com