Fetch.ai and other AI-linked tokens have been soaring alongside the ChatGPT-driven artificial intelligence narrative. As a result FETUSD rallied more than 1,000% from lows and Google scrambled to launch its competitor called Bard.
After several months of strong upside, FET is down 17% intraday already as negative news surrounding the Bard launch takes a bite out of AI hype. Here is why it could just be the start of a short term trend change in Fetch.ai, and one that could result in another 80% decline — even during a raging bull market.
Google Botches Launch Of ChatGPT Competitor Bard
Fetch.ai and other AI crypto tokens have outperformed the rest of the market on the heels of a larger AI craze. Everywhere you turn, the media, social influencers, and everyday people are talking about the potential of ChatGPT.
Threatened by the sudden prominence and huge promise of ChatGPT, Google hastily launched Bard — its version of an AI-driven chatbot. However, experts claim it made a factual error in its very first demo.
In the demo, Bard says that James Webb Space Telescope “took the very first pictures of a planet outside of our own solar system.” The statement isn’t correct, however.
The error has abruptly turned a steady stream of positive media coverage surrounding AI as shockingly accurate, into negative headlines questioning AI’s validity.
Why AI Bulls Could Shake Off An 80% Fetch.ai Correction
FETUSD has closely mimicked the charts of other AI-linked assets, such as C3.ai Inc, which has only benefited related cryptocurrencies thus far. But the positive sentiment could be quickly turning.
Fetch.ai has recovered more than 1,000% from bear market lows and some signs suggest a new bull market is beginning. During the last bull market, FET was also an early performer, but still suffered not one, but two roughly 82% drawdowns.
80% drawdowns are common in a bull market | FETUSDT on TradingView.com
Such a drawdown doesn’t necessarily mean the end of a bull run in AI tokens or crypto as a whole. After the first over 80% correction, FET rallied more than 2,000%. Following the second 80% correction, FET climbed another 700%.
Rallies in FET are strong in general | FETUSDT on TradingView.com
ChatGPT has shown incredible promise and Google is bound to get its act together with Bard. Other tech companies are following suit in the AI arms race.
Although FET may suffer a strong correction at some point, it should be viewed as a possible buying opportunity because the AI narrative isn’t going away.
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Author: Tony Spilotro