Fetch.AI, a leading player in the field of artificial intelligence, is facing market turmoil following its merger with the Artificial Superintelligence Alliance (ASI). This merger involves the integration of OCEAN and AGIX tokens into Fetch.AI’s own token, FET. However, the announcement of the merger and the subsequent rebranding efforts have resulted in a significant decline in Fetch.AI’s price.
As part of the merger process, deposits and withdrawals of OCEAN and AGIX tokens have been halted, and the tokens are in the process of being delisted from exchanges. Despite these ambitious plans, Fetch.AI has experienced a negative market reaction.
The integration with ASI, while a strategic move to consolidate AI resources, has had an immediate impact on the value of FET. Following the merger announcement, the price of FET dropped by over 9%, indicating that investors are selling off their holdings. This reaction is reminiscent of earlier delays in the merger process, which were attributed to logistical and technical challenges. The sudden decline in price suggests that investors may be concerned about the execution of the merger and its implications for the future.
The decision by major exchanges such as Kraken and Coinbase not to support the migration of ASI tokens has added to the uncertainty surrounding the merger. These exchanges require users to manually migrate their tokens, which could complicate the process and discourage participation. This lack of comprehensive support indicates possible concerns about the complexity and feasibility of the merger.
Despite these challenges, the ASI alliance, which includes Fetch.AI, SingularityNET, and Ocean Protocol, remains committed to creating a robust decentralized AI ecosystem. However, the critical response from the market highlights the importance of clear communication and effective implementation.
The decline in Fetch.AI’s price following the merger emphasizes the need for ongoing transparency and reassurance from the ASI alliance. Without these measures, the merger could fail and damage Fetch.AI’s credibility and market value, as well as that of the other two tokens involved.
The price of FET has been steadily declining, and there has been no positive reaction to the ASI integration news. The lack of clarity surrounding the merger has likely created fear, uncertainty, and doubt (FUD) in the market, leading participants to sell off their tokens.
Since the ASI integration went live on July 1, the price of FET has dropped nearly 10% and has remained stagnant. If the sell-off continues, the price could drop to the support level near $1.15. If this support level fails, it is likely that the token will test the next support level near $1.
However, a recovery rally from this point would require the price of FET to break through the resistance level near $1.44. If successful, the token could rally to the 200-day EMA resistance level near $1.7 before experiencing a correction.
The relative strength index for the Fetch.AI token remains neutral, with a score of 39.63 on the daily charts. This indicates that the market sentiment towards FET is neither overly positive nor negative at this time.