The rise of AI tokens has been the talk in the crypto space, with several projects like SingularityNET, The Graph, and Fetch.ai gaining impressive spikes in their market cap valuation. Despite the hype, popular crypto trader Scott Melker is not convinced and singled out SingularityNET for criticism.
SingularityNET (AGIX) Rise Due To Market Euphoria
Scott Melker, who has more than 850,000 followers on Twitter, revealed in a tweet that there’s a strong price rejection for Singularity at its all-time price high, and the market shows a clear bearish divergence at the top after being overbought.
He further casted doubt about AGIX development by suggesting that the project has a single developer in its entire ecosystem and has benefited from the current euphoria surrounding the AI token ecosystem. In this sense, the trader believes that the current prices do not reflect the true value of AGIX token and that the asset could dip in the future.
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Melker’s comments have not been without scrutiny, as some crypto community members pointed out that SingularityNET had more than 200 developers working within its ecosystem in 2022. While others noted that AGIX has been straightforward with their developments and has a reputable team.
With this scenario, Melker maintains that he does not believe in the SingularityNET project and won’t be trading it. In this way, he has demonstrated the importance of monitoring and investigating projects and doing technical and fundamental analysis before taking the risk of investing.
What’s Behind The Rise Of AI Tokens
The remarkable rise of AI tokens within cryptocurrency has sparked much conversation. The success of AI tokens comes in response to the growing demand for decentralized computing capacity. Big corporations, institutions, and research centers are starting to deploy more AI-related tasks requiring high-end computing resources from a trusted source.
Moreover, several AI token projects have offered their platforms as a solution for utilizing distributed computing resources that are both cheap and safe. Additionally, these projects come with decentralized applications and protocols that allow developers to create and manage AI projects much more easily.
Related Reading: SingularityNET (AGIX) Shows No Signs Of Stopping, As AI Crypto Blows Up 923%
Due to this, these tokens have generated strong interest from mainstream investors, leading to heightened demand for AI tokens. It is expected that the demand for AI tokens will continue to remain in the market, with leading projects such as SingularityNET and The Graph expected to receive more attention in the near future.
AGIX Price Analysis
Based on the current technical analysis, AGIX token is trading at a bullish price after a strong surge in the crypto space. The token is currently trading at $0.40 with a 24-hours high of $0.429, after having its year high at $0.65 earlier in the week.
Its market cap is currently around $525 million, with a 24-hour daily trading volume of $318 million. The high trading volume of AGIX suggests that investors’ eagerness has yet to dissipate, although the token has cooled off since its all-time high.
The current market sentiments indicate that AGIX may not make another surge soon, and investors should remain on guard for a possible price dip.
Featured image from Singularity.net, charts from TradingView.com