Fetch.ai’s FET token has seen a significant surge, gaining over 5% in 24 hours and reaching $0.294, driven by a sharp increase in trading volume and renewed investor interest in the artificial intelligence sector within cryptocurrency.
The rally pushed the token’s daily transaction volume to more than $194 million, a 63% increase above its 30-day average. This elevated liquidity suggests growing engagement from traders.
Fetch.ai’s market capitalization climbed to $697.8 million following the price movement. This positions the token as a notable player in the crypto-AI space.
The recent gains contrast sharply with its performance over the past month, which saw the token’s value drop by nearly 55%. Weekly returns also showed a retreat of over 21%.
The token’s current price remains significantly below its all-time high of $3.44, recorded in March 2024, representing a decline of more than 91% since that peak.
The rebound is primarily attributed to a broader resurgence of interest in artificial intelligence-related cryptocurrencies. Discussions across social media platforms have highlighted positive sentiment regarding Fetch.ai’s integration plans and upcoming token burning initiatives.
Data from derivatives markets supports this optimistic outlook, with positive funding rates on perpetual contracts indicating a dominance of long positions. Open interest in futures contracts also surged 15% to $150 million, signaling increased bullish bets.
On-chain metrics show a 20% rise in daily transactions, reaching approximately 50,000. The number of active token holders has remained stable at 120,000, suggesting sustained adoption despite previous market corrections.
Technically, FET appears to be exiting an oversold zone, with its 14-period Relative Strength Index (RSI) at 35. The Moving Average Convergence Divergence (MACD) indicator also shows a bullish crossover.
Fetch.ai aims to integrate artificial intelligence with blockchain technology through autonomous agents. The project has established partnerships, including one with Bosch, and utilizes the Cosmos Inter-Blockchain Communication (IBC) protocol.
Compared to similar AI-focused crypto projects like SingularityNET (AGIX) with a market capitalization of $500 million and Ocean Protocol (OCEAN) at $400 million, Fetch.ai leads in terms of volume-to-market-cap ratio.
Despite the positive momentum, market analysts warn that the rally could be vulnerable to broader macroeconomic shifts, such as changes in interest rates by central banks. Regulatory uncertainties in the AI sector, including potential legislation like the European Union’s AI Act, also pose risks.
The token exhibits a 0.75 correlation with Bitcoin, which currently shows a flat trading pattern. It also has a 0.6 correlation with the S&P 500.
Market observers suggest accumulating the token on dips below $0.280, with a recommended stop-loss at $0.250 to mitigate potential risks. This analysis is not investment advice.