AI-Centric Altcoins Slump, Forecast to Bearish Trajectory Amid Cryptocurrency Market Caution

Despite a positive start to the week, the cryptocurrency market lacks momentum, leading analysts to forecast a bearish trajectory for some tokens. Altcoin Sherpa, a popular analyst, predicts further declines for AI-focused projects Render (RNDR), Bittensor (TAO), and Prom (PROM), citing Fibonacci levels, exponential moving averages, and support breaches.

Analysts Predict Bearish Trajectory for AI-Centric Altcoins, Signaling Caution in Crypto Market

As the cryptocurrency market enters the new week with a lackluster performance, analysts are raising concerns about the potential for a bearish trend in the near future. This foreboding outlook has led to bearish forecasts for several altcoin projects, particularly those focused on artificial intelligence (AI).

Altcoin Sherpa Predicts Further Decline for RNDR

One prominent crypto analyst, Altcoin Sherpa, has projected a further decline for Render (RNDR), an altcoin associated with Graphics Processing Units (GPUs). According to the analyst, RNDR is poised to revisit the 0.618 Fibonacci level before experiencing any significant bullish reversal.

"RNDR has experienced a significant correction during the recent market downturn," observed Altcoin Sherpa. "However, I believe that the token has the potential to recover its losses and reach new highs in the long term. Investors should consider buying RNDR between its current price and $6, as I am confident in its future prospects."

TAO May Drop to Find Support

Another AI-focused blockchain platform under scrutiny is Bittensor (TAO). Altcoin Sherpa suggests that TAO may need to experience a further decline to the 0.50 Fibonacci level in order to find support.

"TAO has exhibited a strong reaction to the 0.50 Fibonacci level and the 200-day exponential moving average," noted Altcoin Sherpa. "If this level holds, the token could regain its positive momentum. However, if it breaks below this support, it could potentially fall to $320."

PROM Faces Potential Sell-Off

Finally, Altcoin Sherpa has also expressed cautious optimism regarding Prom (PROM), an interoperability protocol. The analyst believes that PROM is at risk of experiencing a major sell-off if it fails to maintain its range support at $9.45.

"PROM has broken below its lower range but has managed to recover partially," said Altcoin Sherpa. "While the token is currently trading within its range, a close below this support level could trigger a significant pullback. I am monitoring the situation closely and will adjust my view based on market developments."

Uncertainty and Volatility in the Crypto Market

These bearish forecasts reflect the overall uncertainty and volatility that continue to plague the cryptocurrency market. Investors are reminded to exercise caution and conduct thorough research before making any investment decisions.

The negative market sentiment has weighed heavily on altcoin prices, and further downward pressure is possible in the short term. Analysts emphasize the importance of managing risk and diversifying investments to mitigate potential losses.

As the market evolves, investors should closely monitor key indicators and technical analysis to make informed trading decisions. Stay up-to-date with the latest news and expert insights to navigate the volatile crypto landscape effectively.