The Artificial Intelligence (AI) sector of the crypto space has enjoyed one of the most notable rallies despite the OpenAI debacle. The company behind ChatGPT has fired one of its founders and CEO, Sam Altman, flashing the downside pressure for AI-based tokens, such as FET.
The native token for Fetch.ai, FET, is trending to the upside in line with the general market sentiment. Last month, the cryptocurrency recorded a 160% rally, and it is poised for further gains as it has breached critical resistance levels.
OpenAI Controversy Adds Fuel For FET’s Rally
Data from Coingecko shows that strong FET momentum took a hit last week as news of Sam Altman leaving OpenAI broke. The sign moves along with any progress from the broader AI sector, and the uncertainty surrounding this company has affected its performance in short timeframes.
By the end of the week, the FET regained its momentum and reclaimed territory, extending a more significant rally. In that sense, a pseudonym trader sees the potential target of FET as the cryptocurrency continues its “rally without sinking.”
Last week, FET breached the $0.56 resistance, targeting its 2022 high, as seen in the chart below. If the strong momentum continues, the token could rise to a 2021 high between $0.70 and $0.90.
FET Rally May End With Big Correction
Our Editorial Director and analyst, Tony Spilotro, has been a fixture of the FET run. The analyst believes that FET could rise 2x to 4x before losing steam and revisiting support.
Previously, whenever the token followed a similar trajectory, printing a buy signal above the monthly Bollinger Band, as stated by Spilotro, the FET corrected an impressive 80 %. Therefore, the analyst recommends new investors to be very careful. Spilotro said:
(…) safer than potentially buying FET at that level, as long as you have a plan to get out before the next 70+% correction occurs. Otherwise, the price may return to your entry here. Be smart and don’t expect the rally to go on forever.
Now, Microsoft Office has partnered the hiring of Sam Altman to lead a new AI division. The company will commit to providing resources for the new division, which could ignite a new bull period for AI and AI-based tokens.
Cover image from Unsplash, chart from Tradingview