Price jump for AI-focused tokens: NEAR, RNDR, TAO
The market for tokens powered by artificial intelligence (AI) has experienced a surge following the notable rise of Bitcoin [BTC] surpassing the $71,000 mark.
In the last day, the market cap for AI tokens has witnessed a 5% increase, with their trading volume soaring by 20%, based on data from CoinMarketCap.
Significant players in the AI and big data-driven crypto sector, including Near [NEAR], Render [RNDR], and Bittensor [TAO], have seen their values increase by 8%, 5%, and 7%, respectively, within the same timeframe.
Uncertainty Surrounds Future Momentum
An analysis of the momentum indicators for these tokens, which evaluate the dynamics of market transactions, suggests that the recent price hikes lack substantial market demand backing.
This rise appears to be a reflection of the general boost witnessed across the cryptocurrency landscape over the previous day.
For instance, NEAR's Relative Strength Index (RSI) was reported at 52.29, and its Money Flow Index (MFI) stood at 26.96.
A collective examination of these momentum indicators indicates a predominantly neutral market sentiment, coupled with a significant withdrawal of capital from the NEAR market.
This signals the potential for NEAR to backtrack on its recent price gains as sellers begin to dominate.
In the case of RNDR, its Chaikin Money Flow (CMF) metric was observed below zero, highlighting a net outflow of funds from the asset market.
A CMF value beneath zero typically denotes market vulnerability, characterized by increased selling pressure and potential for a price drop. Presently, RNDR's CMF registers at -0.05.
The Aroon Up Line (orange) for RNDR stands at 0%, which underlines the fragility of the present upward trend. The Aroon Indicator is utilized to assess the strength of a trend and predict potential reversals in price.
A zero-near value for the Aroon Up Line implies a lackluster market upswing and that the peak was achieved some time ago.
Similarly, TAO's market performance is marked by its trading proximity to its 20-day exponential moving average (EMA).
When an asset's valuation hovers near this crucial moving average, it denotes a market consolidation phase, with the price stagnating within a specified range.
This is further substantiated by TAO's decreasing Average True Range (ATR), a measure of market volatility. A downturn in this indicator hints at market hesitation or a consolidation period.
