AI Token Rally: RNDR Surges 40% in May

Quick Look:

• The AI sector in crypto saw a 40% surge, led by RNDR, in early May after poor April performance.
• RNDR formed a Double Bottom pattern with RSI above 50, facing resistance at $12.
• GRT shows a 35% increase potential if it breaks resistance at $0.42.
• FET has resistance at $3.05, facing a potential 20% increase if surpassed.
• The ASI merger stabilises AGIX and OCEAN, while AI tokens face critical resistance.

A strong resurgence in May, led by RNDR, which spearheaded a nearly 40% rally from its lows on May 1. The sector had been one of the worst-performing in April, suffering a decline of 55% since their yearly highs. Despite this, AI tokens have mounted a strong comeback, with RNDR emerging as a clear leader.

RNDR & GRT: AI Tokens Rebound After April Decline

RNDR exhibited a Double Bottom pattern, signalling a bullish reversal. The token has shown numerous bullish signs, including a notable double-bottom pattern and bullish divergence. The Relative Strength Index (RSI) increased above 50, and the Moving Average Convergence Divergence (MACD) moved above zero. RNDR encountered resistance at the $12 level, which, if surpassed, could lead to a 20% increase. However, if the price falls below the $9.15 support level, a potential 25% drop could occur.

GRT, which also created a Double Bottom pattern, showed bullish divergences but has not yet broken out from the $0.30 horizontal resistance area. The token faces a resistance level at $0.42, with a possible increase of 35% if surpassed. Conversely, it has a support level of $0.25.

FET Faces $3.05 Resistance, Lacks Bullish Indicators

FET, serving as the reserve token for ASI, also displayed a Double Bottom pattern. However, unlike the other tokens, it lacked bullish divergences in the RSI or MACD indicators. FET faces a resistance level at $3.05, with a potential 20% increase if surpassed. It has a support level of $2.50.

In a significant development, the ASI merger scheduled for May 24, 2024, is expected to keep AGIX and OCEAN prices steady until the merger occurs. During this period, FET is anticipated to maintain a price of 2.43 times that of AGIX and OCEAN.

Despite the notable increase since May 1, the basket of AI tokens still trades at a critical resistance level. RNDR has emerged as the leader of this rally. The key question is whether RNDR will continue leading the rally for the remainder of May. While AI tokens have rebounded impressively, they remain smaller caps than other sectors, and the sector’s performance continues to be closely watched.

AI Tokens Rally 21%, RNDR Leads with 40% Surge

Memecoins have dominated as the best-performing narrative for most of the year. Still, this recent AI token rally has shifted the focus back to the potential of AI-related projects. The basket of AI tokens has rebounded significantly since May 1, with RNDR leading the way, followed closely by GRT. An ASI merger has been influencing the prices of AGIX and OCEAN, while NEAR has shown the smallest recovery since May 1 despite being the top gainer in April.

The AI token rally, led by RNDR, has resulted in a remarkable 40% bounce since the lows of early May. The basket of AI tokens has increased by 21% since May 5, with RNDR breaking out from its main resistance area. As smaller caps compared to other sectors, AI tokens exhibit notable volatility, but their recent performance has reignited interest in their potential.