Will AI coins make a comeback after meme coins stop rallying?
- Bitcoin’s comeback seems to have paused, which is an opportunity for altcoins to kickstart their uptrend.
- A few AI coins are bouncing back quickly and are trading well above their pre-crash levels.
- Sleepless AI is one such crypto that has shot up nearly 50% in under 36 hours.
The Artificial Intelligence (AI) sector saw a massive boost due to Nvidia’s earnings in February. But as Bitcoin price rallied, these tokens paused or slowed their ascent. This window of opportunity was seized by meme coins like Pepe Coin (PEPE), dogwifhat (WIF), Bonk Inu (BONK) and so on. Now, some of the AI coins seem to be showing strength and could be signaling the start of another leg up.
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AI-based crypto tokens see spike in demand
AI coins’ performance shows that the whole sector has not only recovered the losses noted during the $1 billion liquidation event but is well above the pre-crash levels.
AI coins performance
While Fetch.AI price has shown consistent performance, Sleepless AI’s price has noted a near-50% rally in under 36 hours.
Sleepless AI price might provide buying opportunities soon
AI price broke out of its three-week consolidation on March 6, which led to a 22% upswing. Currently, Sleepless AI trades around $2.13 and could retrace into a stable support level of $1.94.
This pullback could be a buying opportunity where sidelined buyers could accumulate AI tokens. A bounce here could potentially push the altcoin up by nearly 30% to the 261.8% Fibonacci extension level.
This forecast from the trend-based Fibonacci tool uses three swing points – two swing lows and one swing high. For Sleepless AI, these points were formed on February 17, March 3 and 5, respectively.
Supporting this bullish outlook is the 12-hour Relative Strength Index (RSI) that has moved above the 50 mean level and the Awesome Oscillator is close to producing a flip of the zero level. Both these indicators are showcasing a spike in bullish momentum that supports a potential bounce after the upcoming pullback.
While the outlook for Sleepless AI price is bullish, it could be overturned should Bitcon price continue its descent. In such a case, if AI produces a lower low below $1.42, it would invalidate the bullish thesis.
This development could lead to a 11% crash to the next key level at $1.26.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
