The Artificial Intelligence (AI) sector in the crypto space has enjoyed one of the most notable rebounds despite the debacle with OpenAI. The company behind ChatGPT fired one of its founders and CEO, Sam Altman, causing downward pressure for AI-based tokens such as FET.
Fetch.ai’s native token, FET, has been on an uptrend following the overall market sentiment. Over the past month, the cryptocurrency has recorded a 160% rally and is poised for further gains as it breaks critical resistance levels.
OpenAI controversy adds fuel to FET rally
Coingecko data indicates that FET’s bullish momentum took a hit last week when news broke about Sam Altman’s departure from OpenAI. The token has moved with any developments in the AI sector in general, and the uncertainty surrounding this company has affected its performance in the short term.
Over the weekend, FET regained its bullish momentum and regained territory, extending a more significant rally. On that note, a pseudonymous trader examined FET’s potential target as the cryptocurrency continues “its rally without a drop.”
Last week, FET broke through the $0.56 resistance, targeting its 2022 highs, as seen in the chart below. If the bullish momentum continues, the token could reach its 2021 highs between $0.70 and $0.90.
FET rally could end in massive correction
Our editorial director and analyst, Tony Spilotro, has been optimistic about FET’s trajectory. The analyst believes that the FET could rise by 2-4x before losing strength and revisiting support.
In the past, whenever the token followed a similar trajectory, printing a buy signal above the monthly Bollinger Band, as Spilotro claimed, FET would correct by an impressive 80%. Therefore, the analyst recommended new investors to act with caution. Spilotro said:
(…) it is more than likely to buy FET at such levels, as long as you have a plan to exit before the next 70%+ correction occurs. Otherwise, the price could retrace its entry here. Be smart and don’t expect the rally to last forever.
Today, Microsoft Announced the hiring of Sam Altman to head a new AI division. The company will commit to providing resources for the new division, which could usher in a new bullish era for AI and AI-based tokens.
Cover image from Unsplash, chart from Tradingview