AI Coins TAO and FET Hit Hard in OpenAI’s $6.6 Billion Raise
OpenAI's latest funding could be a big boost for the Sam Altman-led company. However, for artificial intelligence (AI) coins, including Bittensor (TAO) and the Artificial Superintelligence Alliance (FET), this is classic “selling the news.”
In the past, such developments have led to significant increases in the price of this altcoin. Today, however, it is not the same as FET and TAO prices, which have decreased. But what is after this development?
OpenAI adds value, but TAO goes the other way
On October 2, Open AI raised $6.6 billion from several investors. Microsoft, the company's biggest backer, led the round, according to Reuters. The report notes a significant investment by the world's leading graphics processing unit (GPU) supplier, Nvidia.
“The money comes in the form of convertible notes, and the conversion to equity is based on a successful structural change to a non-profit with no board oversight and the elimination of cash payments to investors,” according to a Reuters report.
However, unlike in the past when news has skyrocketed the market cap for AI coins, that hasn't happened. As of this report, TAO's price has declined by 8.55% while trading below $500. FET is another AI coin that was affected by the development as its value was almost 7%.
Read More: How to Invest in Artificial Intelligence (AI) Cryptocurrencies?
Three days ago, TAO indicated its readiness to climb to $700. However, according to the balance of power (BoP), the strength of buyers has weakened. This decline gives the sellers an advantage.
Therefore, the price of TAO may face another decline. With the TAO price at $498.30, the Fibonacci retracement indicator indicates that the token, one of the AI coins with the highest market value, may drop to $465.70.
Meanwhile, TAO's price may rise again if sellers tire and bulls make up for the exhaustion. In this case, the price of the altcoin could jump to $617.90.
The cost of the FET may decrease again.
The FET situation is not really different from the TAO. As of press time, FET is trading at $1.40 and has now fallen below the 20-day exponential moving average (EMA). EMA gives great meaning to recent price trends to measure trend direction.
When the price is above the EMA, the trend is bearish. However, since the price of AI coin is below the threshold, it indicates a bearish trend. Given the altcoin's positioning, it may find it challenging to rebrand. Instead, FET prices may continue to trend downward.
Read more: Top 9 Artificial Intelligence (AI) Cryptocurrency in 2024
If this happens, the token may drop to $1.22. However, FET could rise to $1.74 if AI coins see significant volatility mainly due to capital inflows.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
