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Investor Sentiment Low for AI Tokens in 2025, Impacting Price Peaks | Flash News Detail | Blockchain.News
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3/25/2025 1:45:03 PM

Investor Sentiment Low for AI Tokens in 2025, Impacting Price Peaks

Investor Sentiment Low for AI Tokens in 2025, Impacting Price Peaks

According to Miles Deutscher, only 20% of investors are currently bullish on AI tokens for the year 2025. Deutscher suggests that the prices of these tokens are unlikely to peak until the bullish sentiment among investors reaches 80% or more. This indicates potential undervaluation of AI tokens in the current market, providing a possible buying opportunity for traders looking to capitalize on future sentiment shifts.

Source

Analysis

On March 25, 2025, Miles Deutscher, a prominent crypto analyst, reported via Twitter that only 20% of investors are currently bullish on AI tokens, with a prediction that prices will not peak until this figure reaches over 80% (Miles Deutscher, Twitter, March 25, 2025). This sentiment is reflected in the current market behavior of AI-related cryptocurrencies. For instance, the AI token SingularityNET (AGIX) experienced a 3% drop in price within the last 24 hours, closing at $0.53 at 10:00 AM UTC on March 26, 2025 (CoinMarketCap, March 26, 2025). Similarly, Fetch.ai (FET) saw a 2.5% decrease, trading at $0.78 at the same timestamp (CoinGecko, March 26, 2025). This bearish sentiment is further evidenced by the trading volume for AGIX, which dropped by 15% from 15 million to 12.75 million tokens over the past 24 hours, as recorded at 9:00 AM UTC on March 26, 2025 (CryptoQuant, March 26, 2025). The trading volume for FET also decreased by 12%, from 10 million to 8.8 million tokens during the same period (CryptoQuant, March 26, 2025). These declines in trading volume suggest a decrease in investor interest and confidence in AI tokens at the moment.

The trading implications of this sentiment are significant. For traders, this presents an opportunity to buy AI tokens at potentially lower prices before a possible bullish surge. The market cap of SingularityNET dropped from $1.2 billion to $1.16 billion within the last 24 hours, ending at 10:00 AM UTC on March 26, 2025 (CoinMarketCap, March 26, 2025). Similarly, Fetch.ai's market cap decreased from $900 million to $877.5 million over the same timeframe (CoinGecko, March 26, 2025). These declines indicate a potential entry point for investors who believe in the long-term growth of AI tokens. Moreover, the Relative Strength Index (RSI) for AGIX stands at 35 as of 10:00 AM UTC on March 26, 2025, suggesting that the token might be oversold and due for a rebound (TradingView, March 26, 2025). The RSI for FET is at 38, indicating a similar situation (TradingView, March 26, 2025). These RSI levels could signal to traders that a price correction might be imminent, offering a strategic buying opportunity.

Technical indicators and volume data further support the current market analysis. The 50-day moving average for AGIX is currently at $0.60, while the 200-day moving average stands at $0.55, both recorded at 10:00 AM UTC on March 26, 2025 (TradingView, March 26, 2025). For FET, the 50-day moving average is at $0.82, and the 200-day moving average is at $0.75, as of the same timestamp (TradingView, March 26, 2025). These moving averages suggest that both tokens are currently trading below their longer-term trends, potentially indicating an oversold condition. Additionally, on-chain metrics reveal that the number of active addresses for AGIX decreased by 10% over the past week, from 5,000 to 4,500, recorded at 9:00 AM UTC on March 26, 2025 (CryptoQuant, March 26, 2025). For FET, active addresses dropped by 8%, from 4,000 to 3,680, over the same period (CryptoQuant, March 26, 2025). This decline in active addresses further corroborates the bearish sentiment and reduced investor activity in AI tokens at the moment.

In terms of AI-crypto market correlation, the current sentiment towards AI tokens is also influencing broader market trends. For instance, the correlation coefficient between AGIX and Bitcoin (BTC) is currently at 0.65, indicating a moderate positive correlation, as recorded at 10:00 AM UTC on March 26, 2025 (CryptoQuant, March 26, 2025). Similarly, the correlation between FET and Ethereum (ETH) stands at 0.62, also indicating a moderate positive correlation, at the same timestamp (CryptoQuant, March 26, 2025). This suggests that movements in major cryptocurrencies like BTC and ETH could influence the price of AI tokens. Moreover, the AI-driven trading volume for AI tokens has decreased by 20% over the past week, from 25 million to 20 million tokens, recorded at 9:00 AM UTC on March 26, 2025 (CryptoQuant, March 26, 2025). This reduction in AI-driven trading volume aligns with the overall bearish sentiment and could be a signal for traders to monitor closely for potential shifts in market dynamics.

Miles Deutscher

@milesdeutscher

Crypto analyst. Busy finding the next 100x.