FET Price Rockets 281% In 2023 As AI Arms Race Helps Increase Demand For AI Crypto tokens

PATNA (CoinChapter.com) — AI-backed blockchain platform Fetch.AI (FET) enjoyed a bullish start to the year. FET price spiked by 281% YTD to form a daily high near $0.343 before bears pared gains.

The hype surrounding OpenAI’s ChatGPT has ignited Big Tech’s interest in AI and its applications. Per a study by UBS, ChatGPT might have reached 100 million active users in Jan. The achievement would make the AI chat platform the fastest-growing consumer application in history, Reuters noted.

UBS analysts highlighted that TikTok took nine months to reach 100 million users while Meta’s Instagram needed 2.5 years to complete the milestone. The exponential rise in the popularity of AI platforms has bled into AI-related blockchain platforms like Fetch.AI.

FET Price Momentum Turning Bullish

The Fetch.AI crypto token price rose nearly 32% from Feb 1’s low of $0.26, underscoring the bullishness of FET price action. After closing on Feb 3 with more than 20% gains, FET price dropped 8.2% to form a low near $0.315 on Feb 4.

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However, long wicks on both ends of the daily candle indicate indecision among market participants regarding FET price action. Moreover, the relative strength index for the FET coin pulled back before breaching the overbought threshold.

Currently, FET price’s RSI is neutral with a value 68.05 on the daily time frame. However, FET coin’s proximity to the overbought region might increase the selling pressure against the Fetch.AI crypto token’s price action.

If the FET coin price continues to move down, the AI crypto token would likely test support near $0.306. Breaching immediate support level could force FET price to fall to its 20-day EMA (red wave) support near $0.27 before recovering.

Meanwhile, the momentum oscillator MACD is turning bullish for the Fetch.AI token. Negative (Red) bars on the MACD histogram are contracting, indicating the MACD line (difference between 12-day and 26-day EMA) moves toward the MACD signal line (9-day EMA of MACD), likely to form a bullish crossover.

Buyers might enter the market once the pattern forms, helping push FET price rise to resistance near $0.335. A break and hold above immediate resistance might help the FET coin price challenge resistance near $0.38 before correcting.