NOIDA (CoinChapter.com) — Fetch.ai’s native token, FET, recently exhibited an impressive price rally, with a 23.3% rally on Feb. 21 pushing the token to a daily high near $1.16. However, the rally halted afterward as bears started booking profits, resulting in FET prices going lateral since Feb. 22.
The upswing in FET’s value had analysts linking the Fetch.AI price rally with Nvidia’s latest earnings report. However, it was not only Nvidia gains pushing FET prices higher.
Factors Fueling Price Surge
Nvidia’s latest earnings report exceeded expectations, showcasing significant growth and profitability driven by its dominant position in the Artificial Intelligence sector. The success not only bolstered Nvidia’s stock but also had a ripple effect on AI-related cryptocurrencies, including FET.
The Santa Clara, California-based company’s earnings report beat nearly every expectation set by market participants. Nvidia reported revenue of $22.10 billion for its fiscal fourth quarter, a rise of 265% year on year.
Furthermore, net income surged by 769% as the company continued to see a boost from excitement over artificial intelligence. The resulting bullish sentiment helped Nvidia stock add $277 billion in stock market value on Feb. 22, Wall Street’s largest one-day gain in history.
Nvidia’s performance in its recent earnings report underscored AI technologies’ growing importance and potential, increasing investor optimism toward AI-linked tokens like FET.
As Nvidia continues to thrive, Fetch.ai and similar projects will likely benefit from the bullish sentiment surrounding AI, helping continue FET price rally.
Besides Nvidia earnings, another reason that could have propelled Fetch.AI price rally might have been the launch of SORA by OpenAI.
The latest offering from the ChatGPT team allows users to create short videos based on simple written prompts, opening up possibilities for content creation, education, and various other fields. The launch created a buzz among AI crypto investors, helping the FET price rally.
Profit Booking Puts A Break In FET Price Rally
Meanwhile, profit booking resulted in FET price halting its 6-day-long bull run that helped Fetch.AI nearly carve a new all-time high. However, bears soon moved in, forcing the Fetch.AI token to pare gains after reaching $1.2 on Feb. 22.
Moreover, the FET price rally pushed its relative strength index (RSI) into the overbought region, with a score of 79.54 on the daily charts. RSI is a momentum indicator measuring asset price movements to identify overbought or oversold conditions.
Traders often consider an overbought RSI level a bearish signal since the occurrence usually precedes a bearish reversal or consolidation phase for the underlying token. Hence, FET price rally risks a drop to the support near $0.97.
Moreover, a break below the immediate support might see the Fetch.AI token’s rally test the 20-day EMA (red wave) support near $0.78.
On the other hand, a continued FET price rally might see the token climb to $1.24. Furthermore, flipping the immediate resistance would give the Fetch.AI token’s price rally to target the resistance near $1.46, marking a new ATH.
