Analyst Predicts Corrections for Two AI Altcoins, Says One Low-Cap Coin in Danger of Significant Pullback

April 21, 2024

A closely followed crypto strategist known for his timely altcoin calls believes two coins in the artificial intelligence (AI) subsector are going to see more downside price action.

Pseudonymous analyst Altcoin Sherpa tells his 215,200 followers on the social media platform X that Render (RNDR), a project related to Graphics Processing Units (GPUs), could revisit the 0.618 Fibonacci level before witnessing a bullish reversal.

“RNDR: these times are great during bull markets; you get a chance to scale into great projects at key levels. Buy from here down to $6 and feel very confident about it.”

Traders use Fibonacci retracement levels to identify potential support and resistance areas. At time of writing, RNDR is worth $9.06.

Another altcoin on the trader’s list is Bittensor (TAO), a decentralized blockchain platform that focuses on machine learning and AI. According to Altcoin Sherpa, he sees TAO dropping to 0.50 Fibonacci level to find some support.

“TAO: Binance listing was a sell-the-news event (obviously). Expecting price to go lower around $400-ish, 0.50 Fibonacci level and 200-day exponential moving average.

Still, price already reacted around that level, so would really like to see that area hold. Heavy volatility there will make me think that $320 is next if $400 can’t hold.”

Last week, Binance announced that it was rolling out trading services for TAO. At time of writing, TAO is worth $479.76.

The last altcoin on his radar is the interoperability protocol Prom (PROM). Altcoin Sherpa says that PROM will likely see a big sell-off event if it fails to hold its range support at around $9.45.

“PROM: broke below range low but did tag the 200-day exponential moving average. Generally speaking, it’s an area of interest and I’d like to see this trade back within the range.

Close below = I think this one pulls back significantly but I’m still holding.”