Recent advancements in artificial intelligence are shaping the future of several industries, sparking a new cycle of FOMO in the financial markets where nearly anything with AI in its name making moves higher. SingularityNET has emerged as a leader in this tech hype, with its value increasing from $0.03 to $0.64 in just three months.
Despite these gains, price action for SingularityNET has faced heavy resistance around the previous highs set in 2021, and after five weeks of trying to break its weekly range, it appears that the overall crypto market does not currently have enough steam for AGIX to push through the resistance.
Bitcoin is currently having its worst week since November as an equity selloff, fear over higher interest rates, and an escalating US regulatory crackdown on crypto hurt investor sentiment. If the broader market continues to break down, retracement levels can hint toward a potential buy opportunity.
It only took 3 months for price to get here and there are a lot of market participants that may have missed out on such a sudden move. As a result, its reasonable to believe there are many investors looking for an opportunity to get in.
Fibonacci Levels Reveal Potential Support
The Fibonacci retracement levels are based on mathematical ratios that suggest the price of an asset may retrace to one of the levels before continuing in the direction of the trend. These levels are commonly used by traders to identify potential support or resistance levels, which can be used to make trading decisions.
In general, a relatively shallow retracement means that the price has not declined much before moving higher again. This is often interpreted as a sign of strength in the trend and can be seen as more bullish compared to a deeper retracement.
The most significant levels are the 0.382 and 0.618, which align with the golden ratio. Currently, these price levels for AGIX stand at $0.22 (0.382) and $0.11 (0.618) as measured from the local weekly range.
Is SingularityNET Still a Buy Despite Recent Price Action?
While the breakdown below the local range at the $0.375 level may be a cause for concern, it does not necessarily mean the end is near. Watching for increasing volume levels and a series of higher lows at the retracement levels may indicate a buy opportunity.
If the broader crypto market can gain steam, it’s possible that AGIX takes another stab at the weekly highs. However, traders and investors should remain cautious and look for confluence with other technical indicators in order to make informed trading decisions.
SingularityNET (AGIX) is a blockchain-based decentralized platform that aims to create a marketplace for artificial intelligence services. The platform enables developers to create, share, and monetize AI algorithms, models, and services through a decentralized network.
AGIX is the native cryptocurrency of the SingularityNET platform, used as a means of exchange for AI services within the network. It is an ERC-20 token on the Ethereum blockchain, and it is used for transactions and payments on the platform. AGIX can also be used for staking and participating in the governance of the network.