• 30 June, 2024
News

AI Boom Sparks Potential Rally in AI-Based Altcoins: Report

OpenAI has officially begun training its latest frontier model, creating waves of excitement in the tech and crypto communities. Coupled with rumors on X platforms that the highly anticipated GPT-5 (Generative Pre-trained Transformer) might already be in its final training stages, this development suggests that the release of the next model could be imminent. 


Historically, breakthroughs in AI have impacted the performance of AI-based altcoins. For instance, Nvidia’s earnings reports have previously influenced certain AI-focused cryptocurrencies. Similarly, the forthcoming release of GPT-5 is expected to trigger a substantial rally in AI-centric altcoins.

TokenFi (TOKEN) stands out as a major performer, boasting a 20.75% gain over the past week. Other AI-based cryptocurrencies have seen only minor increases in comparison. Two tokens, TokenFi (TOKEN) and Worldcoin (WLD) in particular, are poised for potential significant gains in the near future. 

The 12-hour chart for TOKEN shows it is at a critical juncture in its upward trend. TokenFi’s price has surged by 42% in the past two weeks and is retesting the $0.161 mark, the midpoint of its range between $0.0762 and $0.246. This level also aligns with the high-volume node on the Volume Profile, indicating it as a crucial support or resistance zone.

Analysts Spot Worldcoin’s Resilience, Celestia’s Reversal and Polkadot’s Resistance

If TOKEN faces rejection at the $0.161 level, it may revisit support levels at $0.135 and $0.129, presenting a 15% correction opportunity for investors. The Relative Strength Index (RSI) indicates the asset is in the overbought zone, supporting the likelihood of a pullback. Despite this, there are no immediate sell signals, suggesting that such a correction might be a strategic accumulation point for long-term investors.

Source: TradingView

A breakdown below the $0.110 level would signify a bearish shift, possibly triggering an additional 30% correction to $0.0762. Despite this, notable crypto analysts like Clifton Fx and Crypto Knight890 express bullish outlooks on related AI tokens, suggesting potential breakout opportunities in the market. 

According to Clifton Fx, ENJ is gearing up for a significant bullish wave. His ENJ analysis indicates that several factors are aligning, making ENJ a promising candidate for a potential breakout However, Crypto Knight890 highlighted that FET is on the cusp of a breakout. His analysis points to a possible breakout for FET, driven by similar bullish signals observed in the market. 

As AI continues to drive innovation, its influence on cryptocurrency markets remains a dynamic and exciting space to watch. The anticipated advancements and releases in AI technology, like GPT-5, are set to shape the future landscape of AI-based altcoins.

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