Right now, the crypto market is taking a breather. It’s been pretty quiet, without any big news to really move prices up or down.

Interestingly, even though things are calm, a couple of cryptocurrencies, Bittensor (TAO) and Artificial Superintelligence Alliance (FET), are looking a bit ‘overheated.’ They’ve climbed quite a bit recently, which might mean they’re due for a bit of a pullback.

We’ve seen these coins jump up in price recently, which can be tempting for traders who like to jump on a rising trend. But when something is ‘overbought,’ it often means the price gains might pause or even reverse.

This ‘overbought’ situation we’re talking about? It’s flagged by something called the Relative Strength Index, or RSI. Think of the RSI as a gauge that measures how quickly prices have been moving. It goes from 0 to 100, and when it goes above 70, it’s like a warning sign that things might be getting a little too enthusiastic, and a price slowdown or dip could be coming.

Now, an ‘overbought’ RSI doesn’t guarantee a price crash, but it’s definitely a heads-up for traders to be a bit careful. It might be a good time to think about locking in some profits if they’ve been riding the wave.

Artificial Superintelligence Alliance

Let’s dive into Artificial Superintelligence Alliance (FET). It’s currently trading around $0.615, and it’s had a pretty good day, jumping up over 12% in the last 24 hours. But here’s the thing: its 12-hour RSI is sitting at 75.42. Remember that ‘overbought’ level we talked about at 70? Yep, FET is well past that.

So, even with those recent gains, the high RSI is hinting that maybe the buying frenzy is starting to cool off, and we could see a price correction soon.

Why is FET jumping? Well, it seems to be riding the wave of interest in artificial intelligence (AI) related cryptos. These AI coins have been popular, especially during the recent dip in the market. A report from CoinGecko even highlights AI as one of the hottest topics in crypto right now.

That CoinGecko report mentioned that AI tokens are getting a whopping 24.5% of market interest – that’s more than even those meme coins folks love! This buzz around AI is definitely fueling FET’s recent price increase.

Bittensor

Switching gears to Bittensor (TAO). It’s in a similar situation to FET. Its 12-hour RSI is at 75.05. Again, that’s flashing a ‘potential slowdown’ warning.

TAO has also seen a good 24 hours, up almost 9.5%. But just like FET, that high RSI suggests this recent price climb might be starting to run out of steam.

Just like FET, TAO’s price jump seems linked to the current excitement around AI cryptos. But, because those momentum indicators are waving red flags, traders might want to hold back a bit. Maybe wait to see if there’s a price dip, or get a stronger signal before jumping into new trades.

Okay, so the technical stuff is saying ‘be careful.’ But if we look at the bigger picture, the fundamentals of both FET and TAO are actually looking pretty good. This suggests they might keep going up in the short term, despite the RSI warnings.

One reason for this positive vibe around AI tokens? Nvidia’s CEO, Jensen Huang, just visited Beijing and reassured everyone about their commitment to the Chinese market, even with those US export restrictions on their H20 chip. That news really boosted confidence in the AI sector as a whole.

Having said all that, at the end of the day, where FET and TAO go next isn’t just about their own stuff. It’s also heavily influenced by where the entire crypto market is heading.

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