Why I think AI Sector Will Lead This Crypto Rally
Welcome to another Crypto Weekly Digest brought to you by VirtualBacon.
This week we're spotlighting the top three AI-focused coins to buy in November. In the last two months of the year there is a notable amount of concentration on AI conferences, shining a spotlight on the sector and sparking a flurry of updates and announcements. Expect the AI crypto scene to ride this wave, as leading coins are poised to reveal their advancements. We're anticipating a fresh surge of excitement around AI tokens this November, so let's dive in and see which ones are making the headlines.
The AI Crypto Narrative
The AI Crypto Narrative is heating up, with the sector positioned for a major resurgence. The catalyst? OpenAI's inaugural developer conference on November 6th.
https://openai.com/blog/announcing-openai-devday
As the brains behind the viral ChatGPT, OpenAI's reveal of new features and capabilities is set to inject fresh excitement into the AI market. With this event, we'll see a ripple effect of hype, discussions, and breakthroughs flooding social media. It's a given that AI crypto projects will be watching closely, eager to emulate and adapt OpenAI's advancements.
The tail end of 2023 is also packed with AI conferences, where Web2.0 giants will announce key updates, and the AI crypto community is sure to follow suit with their strategic reveals. Market movements confirm the trend, as AI-focused coins lead the rally with a 20% surge over the past week, making it the seventh strongest sector. Notably, the top six AI coins have soared by 13 to 40%. It's not just a fleeting fad; it's a robust sector with staying power. Now, let's explore my top three AI crypto picks for November.
Bittensor Tao $TAO
Bittensor Tao, emerging as a key player in decentralized AI, leverages its native token, Tao, to fuel a network of AI models that democratize access and reward innovation. Its 2022 inception has not gone unnoticed; the project is already positioned as a top AI coin, largely due to its engaged community that echoes the fervor of early XRP and Chainlink enthusiasts. Coin Insider and other mainstream channels are beginning to spotlight its technological prospects, suggesting a rising tide of retail interest.
The project's sophisticated branding and strategic nods to Bitcoin, in both pseudonymity and tokenomics, hightlights its ambition. With a hard cap of 21 million tokens and a halving schedule, Bittensor mimics Bitcoin’s scarcity model, which some investors find appealing for long-term value.
As for market movements, Bittensor's price trajectory has seen a significant upswing, making entry timing crucial. From $46 to $82, its recent rally suggests investor excitement but also calls for prudent entry strategies. Aiming for the $66 to $71 range may be wise, as these levels previously acted as strong support and resistance.
While the project is currently in the spotlight as a shiny new entrant in the AI altcoin space, investors are advised to monitor for price retracements to establish positions. Recognizing the project’s early-stage status and its need to expand its product line, investors should balance the promising hype with grounded entry points for potential short-term gains.
Akash Network $AKT
Moving on, the second altcoin that I'm eyeing for November is Akash Network (AKT). Akash Network capitalizes on decentralized cloud solutions, offering a marketplace for users to buy and sell computing resources with the Akash token. This platform has caught my interest previously.
Three months ago, my view was that AKT was significantly undervalued, given that most were oblivious to their endeavors in crafting a GPU cloud aimed at AI markets. August marked a milestone with the Akash Supercloud for AI going live, powered by their Mainnet 5 upgrade. The platform now offers access to elite Nvidia GPUs like the H100 and A100, coveted for AI training.
https://akash.network/blog/the-supercloud-for-ai-is-live/
When AKT was first on my radar, it traded at $0.65. Post-upgrade, it experienced a huge rally to $1.50, only to correct to an enticing $0.75, a prime reload point before its next rally. The fusion of blockchain and AI is still early, yet Akash Network's practical application in decentralized GPU power is a compelling investment in the upcoming AI domain.
Keep an eye out for Akash Network Economics 2.0, which promises to enhance AKT's utility within their GPU marketplace, potentially increasing the demand for it even further.
Render $RNDR
Render earns a main spot on my November AI crypto picks.
Having initially misjudged its AI connection, I now see Render's pivotal role in the AI-driven demand for GPUs. As the premier decentralized GPU rendering platform, Render is essentially the frontrunner in decentralized AI training. This revelation is crucial because whoever leads in GPU provision naturally commands AI model training.
Render's market presence is notable with a $1.3 billion market cap, and it's on the brink of exciting developments. The upcoming Solana conference will reveal the Render 2.0 roadmap, marking their strategic blockchain shift and the debut of their token burn model, aligning the Render token’s value with actual GPU usage.
Looking at the chart, Render has shown a strong uptrend, and while it’s near its May peak, I advise caution around the conference — often a 'sell the news' event. Watch for a retracement to the $2.20 level, a significant historical resistance and support zone, for an entry point. With eyes on the future, a take-profit target at $2.70 seems prudent, but I’m bullish long-term, especially as we head towards an AI-led market surge in 2024.
Honorable Mentions
While the spotlight is on the top picks for investment, it's worth noting a couple of honorable mentions in the AI sector. These contenders show promise for short-term performance, yet I remain cautious about their long-term holding value. They're not the primary focus of our strategy, but they could present lucrative opportunities for the short-term investor looking to capitalize on short-term market movements. Let’s take a closer look at these two notable mentions.
Fetch.AI $FET
First up in our honorable mentions is Fetch.AI (FET), a platform at the forefront of blending artificial intelligence with blockchain. FET simplifies the integration of AI into existing Web 2.0 applications, marking it as a notable player in the industry. Its reputation as a well-known AI coin suggests it could resonate strongly with the growing AI narrative.
The token's chart is particularly promising, having recently overcome long-term resistance from its 2021 peak. A noticeable pattern on the chart suggests a strong support forming, offering a clear buying opportunity near 30 cents if prices dip to this level again. With AI’s rise in popularity, FET is well-positioned as a token with a strong background and an attractive short-term prospect.
Ocean Protocol $OCEAN
Ocean Protocol earns a spot in our honorable mentions. While it's a data marketplace not directly linked to AI, it tends to ride the wave of AI coin trends. Last year, Ocean had a significant surge during the AI boom and it's showing signs of another breakout. Its chart echoes Fetch.AI's pattern, breaking past a diagonal res
istance and signaling a potential for re-entry around 35 cents. Despite its indirect relation to AI, Ocean’s pattern suggests a bullish trend, making it a noteworthy contender for those eyeing short-term trades in the AI narrative space.
Altcoin Market and Project Updates
Now, let's check out the major altcoin gainers and losers from the past week, and catch up on key project updates.
Best Performing Coins of The Week
Worst Performing Coins of The Week
🟠 Monero community wallet emptied of 2,675.73 XMR in security breach; source unknown.
https://cointelegraph.com/news/monero-community-wallet-loses-all-funds-after-attack
🟠 7.42M GAL ($10.25M) distributed to 142 entities including Amber Group, Spartan, Multicoin, HashKey, Justin Sun via 0x783 address.
🟠 Circle's EURC stablecoin and CCTP to debut on Solana, enhancing cross-chain operations.
https://x.com/jerallaire/status/1720961604538220714?s=20
🟠 Llama secures $6M funding to develop a platform enhancing DAO governance with role-based permissions, moving past 'one vote per token' system.
https://blockworks.co/news/dao-governance-vc-investments
🟠 Arbitrum votes to let ARB holders stake for 7.84%-78.43% yield, paid from the treasury over a year.
http://theblock.co/post/261628/arbitrum-dao-approves-proposal-to-activate-token-staking
🟠 Scroll integrates Chainlink Data Feeds on its Mainnet to advance DeFi solutions with reliable market data for developers.
https://cryptonews.net/news/defi/27800765/
🟠 ORDI token surges 41% on Binance listing, a unique Bitcoin satoshi numbering system. Not affiliated with Bitcoin Ordinals creators.
https://cointelegraph.com/news/bitcoin-ordinals-see-resurgence-binance-listing
🟠 Polygon Labs and NEAR Foundation partner to create a ZK prover for Wasm-based blockchains, enhancing Web3 performance.
🟠 Yuga Labs partners with Magic Eden to launch Magic Eden ETH Market, the first Ethereum NFT marketplace with protected creator royalties.
https://www.theblock.co/post/261515/opensea-cuts-half-of-employees-as-ceo-announces-new-direction
🟠 Chainlink Staking v0.2 launches in 2023, with expanded pool size of 45M LINK and varied staking limits for community and node operators.
https://x.com/chainlink/status/1722630327720726886https://chain.link/economics/staking
This week, we talked about three AI coins that look promising in November. With AI becoming a hot topic again, these crypto picks could see some action. Fetch.AI and Ocean Protocol are good for quick trades, while Render could be a smart choice for the long haul. I'm keeping my eye on AI this month. As always, we also checked out the biggest winners and losers in the altcoin world, plus all the must-know project updates over the course of the past week.
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