NEW DELHI (CoinChapter.com) — Nvidia (NASDAQ:NVDA) is amping up its presence in the artificial intelligence (AI) sector with the release of its three new chips. The tech giant’s involvement in AI means news about Nvidia often impacts crypto AI tokens’ price movement.
Nvidia’s latest offering aims to attract customers with the concept of AI-powered personal computers. AI-powered electronic devices are slowly becoming the fad of the market. For instance, the new Google Pixel’s OS has AI capabilities that assist the user in editing photos, language translation, etc.
In addition, the upcoming Samsung Galaxy S series is rumored to have built-in AI capabilities. As such, a move to an AI-powered PC seems a logical next step. I
In that context, Nvidia introduced three GeForce RTX 4080 Super, a high-performance graphics chip boasting additional processing cores and faster memory chips in the market. Additionally, the tech giant introduced the RTX 4070 Ti and the RTX 4060 4070 too.
Nvidia’s Impact On AI Crypto Tokens
The impact of Nvidia’s AI initiatives has often been immediate and notable on crypto AI tokens. For instance, Render Network (RNDR) price spiked early in 2024 after a previous Nvidia announcement.
The correlation between NVDA price and the price action of crypto AI tokens lost its correlation between May 2023 and Nov. 2023, before the tokens started mirroring Nvidia shares’ price movement.
2023 saw a massive spike in investor interest in anything remotely related to AI. The spike in popularity was the result of popular AI-based chatbots like ChatGPT, etc.
The interest translated into profits for tokens like RNDR, which rallied by as much as 253% to reach 2023’s ATH of $496. Furthermore, the increasing demand for AI across verticals would likely result in massive gains for the crypto AI sector.
With Nvidia leading the AI brigade, any positive news related to the firm is bound to get a reaction from the crypto AI sector.
New Chips Add Fuel To NVDA Price Rally
Nvidia shares have been on a bull run since Jan. 3, ironically the day of the recent crypto market flash crash. The market rally helped NVDA spike 15% since Jan. 3 to reach a daily high near $543 on Jan. 9
If the rally continues, NVDA price might break above the resistance near $545 before targeting the resistance near $564.8.
On the other hand, Nvidia’s RSI is near overbought levels, with a score of 69.3 on the daily charts. Overbought RSI levels often precede trend reversals, which is why traders consider them a bearish indicator.
Profit booking could result in NVDA price dropping to the support near $512. Breaching the immediate support might force NVDA price to test the support near $488 before recovering.
