The Artificial Intelligence (AI) sector in the crypto space has had one of the most prominent rallies despite the OpenAI debacle. The company behind ChatGPT fired one of its founders and CEO, Sam Altman, putting downward pressure on AI-based tokens such as FET.
The native token for Fetch.ai, FET, is trending upward due to general market sentiment. Over the past month, the cryptocurrency rallied 160%, and it is poised for further gains as it breaches critical resistance levels.
OpenAI controversy adds fuel to FET’s rally
Data from Coingecko shows that FET’s bullish momentum took a hit last week when news of Sam Altman’s departure from OpenAI broke. The token moves with every development in the broader AI sector, and the uncertainty surrounding this company has affected its near-term performance.
Over the weekend, the FET regained its bullish momentum and regained ground, continuing a more significant rally. Along these lines, a pseudonymous trader examined FET’s potential target as the cryptocurrency continues “its rally without a dip.”
Over the past week, the FET has broken through the resistance at $0.56 and targeted the 2022 highs, as seen in the chart below. If the bullish momentum continues, the token could rise to its 2021 high between $0.70 and $0.90.
FET rally could end in a massive correction
Our editor-in-chief and analyst, Tony Spilotro, was optimistic about FET’s trajectory. The analyst believes that the FET could rise 2x to 4x before losing momentum and revisiting support.
In the past, when the token followed a similar trajectory and printed a buy signal above the monthly Bollinger Band, as Spilotro stated, the FET corrected by an impressive 80%. Therefore, the analyst advised new investors to proceed with caution. Spilotro said:
(…) it is more than likely that it is safe to buy FET at such levels, as long as you have a plan to get out before the next 70+% correction occurs. Otherwise the price may go back to your entry here. Be smart and don’t expect the rally to go on forever.
Today Microsoft announced the hiring of Sam Altman to lead a new AI division. The company will be committed to providing resources for the new division, which could fuel a new bull era for AI and AI-based tokens.
Cover image from Unsplash, chart from Tradingview