- Aethir has launched its decentralized cloud computing network on the Ethereum mainnet.
- The value of its ATH token may decline in the short term.
Aethir, a decentralized physical infrastructure network (DePIN) provider, launched its decentralized cloud computing network on the Ethereum [ETH] mainnet on June 12.
The protocol allows users to rent powerful computing resources necessary for training artificial intelligence (AI) and displaying digital content.
This service is critical for organizations that require significant computing power, as it provides flexibility and scalability for their operations.
Aethir’s mainnet launch comes with a native token, ATH.
ATH is required for governance and security within the Aethir ecosystem, deployment on the Ethereum network, and payment to computing providers via Arbitrum [ARB].
This mainnet launch comes seven months after the testnet launch on November 7, 2023 on Arbitrum, a layer 2 scaling solution for Ethereum.
In the announcement, Aethir confirmed that the user base on its testnet exceeded 500,000 users, and that it completed a $146 million node sale.
ATH aims for new lows
After the launch of ATH, the price shot up by almost 100% before a correction occurred. At the time of writing, ATH was exchanging hands at $0.073. According to Coin geckothe price has fallen by 14% in the last 24 hours.
Daily trading volume during that period was $261 million, up 38%. The opposing movements of ATH’s price and trading volume indicated the presence of significant bearish sentiment in the token market.
When the price of an asset falls while trading volume increases within the same period, this indicates a peak in selling pressure. This means that most token holders are looking to sell their positions, hence the downward trend in the asset’s value.
A review of ATH’s key technical indicators on an hourly chart confirmed the steady decline in demand for the altcoin.
For example, the Relative Strength Index (RSI) and Money Flow Index (MFI) at the time of writing were 44.88 and 34.85 respectively.
These indicators measure an asset’s overbought and oversold conditions by tracking its price momentum and changes. At these values, ATH’s RSI and MFI suggest that market participants prefer to sell their holdings rather than accumulate new tokens.
This trend was confirmed by ATH’s Chaikin Money Flow (CMF), which measures the flow of money into and out of its market. At the time of writing, the value of this indicator was -0.23.
A negative CMF value is a sign of market weakness. It signals liquidity exit from the market, a harbinger of further price decline.
If ATH’s selling pressure continues to increase, the price could fall towards $0.048.
Source: TradingView
However, if the bulls emerge again and token accumulation starts to rise, ATH’s value could rise to $0.078.
