NOIDA (CoinChapter.com) — Fetch.ai’s native token, FET, has recently seen an impressive price rally. A 23.3% rally occurred on February 21, bringing the token price close to its daily high of $1.16. However, the rally then stalled as bears began taking profits, causing FET prices to move sideways since February 22nd.
FET’s rise in value has led analysts to link the Fetch price rise to Nvidia’s latest earnings report. But Nvidia’s profits aren’t the only thing driving up FET prices.
Factors causing the price surge
Nvidia’s latest earnings report surpassed expectations, showing significant growth and profitability as the company maintains a dominant position in the artificial intelligence segment. This success not only bolstered Nvidia’s stock price, but also had a ripple effect on AI-related cryptocurrencies, including FET.
The Santa Clara, California-based company’s earnings report surpassed nearly every expectation set by market participants. NVIDIA reported revenue of $22.1 billion in its fiscal fourth quarter, a 265% increase compared to the same period last year.
Net profit also surged 769% as the company continued to rise on artificial intelligence expectations. The resulting bullish sentiment helped Nvidia stock add $277 billion to its stock market value on February 22nd. This is the largest single-day gain in Wall Street history.
Nvidia’s performance in its recent earnings report highlighted the growing importance and potential of AI technology, increasing investor optimism about AI-related tokens like FET.
As Nvidia continues to grow, Fetch.ai and similar projects will benefit from the bullish sentiment surrounding AI, helping to sustain FET price growth.
Besides Nvidia profits, another reason that could drive Fetch price growth could be OpenAI’s SORA launch.
The latest product from the ChatGPT team allows users to create short videos based on simple written prompts, opening up possibilities for content creation, education, and many other fields. The launch created a buzz among AI cryptocurrency investors and helped boost FET prices.
Profit booking halts FET price rally.
Meanwhile, profit booking helped Fetch price break a six-day bull run, pushing Fetch to a near-new all-time high. However, a downward trend soon emerged, cutting gains after the Fetch token reached $1.2 on February 22.
Moreover, the rise in FET prices pushed the Relative Strength Index (RSI) into overbought territory at 79.54 points on the daily chart. RSI is a momentum indicator that measures asset price movements to identify overbought or oversold conditions.
Traders often view overbought RSI levels as bearish signals. This is because it usually occurs before a bearish reversal or consolidation phase in the underlying token. Therefore, there is a risk that a rise in FET price could push the support level near $0.97.
Moreover, a break below the immediate support could see a rally in the Fetch token testing the 20-day EMA (red wave) support near $0.78.
On the other hand, due to the continued rise in FET price, the token price may rise to $1.24. Additionally, a reversal of the immediate resistance will cause the price increase of Fetch.AI token to target the resistance near $1.46, marking a new ATH.