- Fetch.ai and Rendr showed a high amount of active addresses
- The recent pullback was followed by the accumulation of RNDR
A recent post on X from Santiment noted that the social media engagement was increasingly centered around whether Bitcoin [BTC] prices could stay afloat. AI and trading strategies were also key topics of discussion.
Fetch.ai [FET] and Rendr [RNDR] were two of the largest tokens by market capitalization in the AI sector. Given the hype around AI despite the market downturn, AMBCrypto decided to investigate what investors need to be prepared for in the coming weeks.
Fetch.ai showed strong on-chain activity
Source: Santiment
The active addresses count trended strongly higher. This was a positive sign and showed increased participation and demand for the token. The mean coin age has been in decline.
It meant that holders were moving their tokens around, possibly for selling purposes. It also denotes older coins re-entering circulation. The dormant circulation also saw multiple large spikes.
These spikes rivaled the late December ones in size. The metric is another that generally underlines a sudden increase in selling activity. The price of RNDR was steady above $10.5 for most of March. The selling pressure of the past two days saw buyers finally succumb.
Source: Hyblock
The liquidation heatmap showed RNDR prices falling into a hefty region with a good concentration of liquidation levels. The $8.4-$8.7 area was estimated to have even more liquidation levels.
It is possible that another wave of selling pressure could cause prices to cascade below the $8 mark before we see a positive reaction from prices. For long-term investors, the $8.4 and the $5.7-$5.9 regions presented a good buying opportunity.
Analysis of the price action of Bitcoin and careful risk management would help keep investors from panicking in the scenario of an extended downtrend in April.
Fetch.ai saw strong development activity
Source: Santiment
The bullish performance of FET on the charts was just one of the factors that would keep investors confident. The alliance for decentralized artificial intelligence was another event whose narrative could last throughout this run.
The development activity of FET has been high since February, showing that there was significant work going on behind the scenes. The active addresses saw multiple spikes of a considerable size in March.
The dormant circulation also saw an increase It was a sign of selling activity from holders who realized profits from the recent rally. Yet, this selling was not enough to force a bearish market structure break on FET in the higher timeframe charts.
The mean coin age had been trending firmly downward as prices rallied since February. Over the past five days, the metric tried to push higher and begin to establish an uptrend. Traders and investors can keep an eye on its movement in the coming days to get clues on whether an accumulation phase is beginning.
Source: Hyblock
The recent rally to $3.5 took out the large concentration of liquidation levels at $3.25. After sweeping that pool of liquidity, the price began to reverse its trend. FET had begun its retracement even before the recent Bitcoin downturn.
Read Fetch.ai’s [FET] Price Prediction 2023-24
There was a high concentration of liquidation levels at the $2-$2.15 region.
It was possible that Fetch.ai prices could fall to this zone, especially if Bitcoin continued to post losses. The trend might reverse once this pocket of liquidity is hit.
Powered by WPeMatico
