Crypto Expert Predicts Sharp Drops for AI-Focused Altcoins

Crypto strategist Altcoin Sherpa predicts a price decline for Render (RNDR) to its Fibonacci level of 0.618, currently at $6.00, before a potential reversal. Additionally, he anticipates a drop for Bittensor (TAO) to its 0.50 Fibonacci level around $400, with potential support from its 200-day moving average. Finally, Altcoin Sherpa suggests that Prom (PROM) may experience a significant sell-off if it falls below its $9.45 support range, as it has breached a key resistance level.

Renowned Crypto Analyst Forecasts Steep Declines for AI-Focused Altcoins

A renowned crypto strategist, known for his prescient predictions in the altcoin market, has issued a bearish outlook for two prominent altcoins within the artificial intelligence (AI) subsector.

Pseudonymous analyst Altcoin Sherpa, with a substantial following of over 215,200 on the social media platform X, anticipates further price declines for Render (RNDR) and Bittensor (TAO).

Render (RNDR): Potential Plunge to Key Support Level

Altcoin Sherpa projects that RNDR, a project centered around Graphics Processing Units (GPUs), may retrace to the 0.618 Fibonacci level, currently hovering around $6, before experiencing a bullish reversal.

"RNDR: These times present golden opportunities during bull markets, offering the chance to accumulate high-quality projects at crucial levels. Strategically buy from the current level down to $6 with confidence," he advises his followers.

Technical analysts often utilize Fibonacci retracement levels to identify potential areas of support and resistance. At the time of writing, RNDR is trading at $9.06.

Bittensor (TAO): Steep Decline to 0.50 Fibonacci Level

Another altcoin on Altcoin Sherpa's watchlist is TAO, a decentralized blockchain platform dedicated to machine learning and AI. He anticipates a significant drop for TAO to the 0.50 Fibonacci level, currently around $400, to find some support.

"TAO: The Binance listing was clearly a 'sell-the-news' event. I expect the price to decline to around $400, aligning with the 0.50 Fibonacci level and the 200-day exponential moving average. However, the price has already reacted favorably at that level, and I'd like to witness it holding firm. Should $400 fail to hold, intense volatility may lead to a further decline to $320," he explains.

Last week, Binance, the world's largest cryptocurrency exchange, announced the commencement of trading services for TAO. At the time of writing, TAO is trading at $479.76.

Prom (PROM): Sell-Off Scenario if Range Support Fails

Finally, Altcoin Sherpa raises concerns about Prom (PROM), an interoperability protocol. He predicts a substantial sell-off if PROM fails to maintain its range support at around $9.45.

"PROM: It has broken below its range low but has touched the 200-day exponential moving average. This area generally attracts interest, and I'd like to see it trade back within the range. However, a close below this level could lead to a significant pullback, although I'm holding onto my position for now," he says.

At the time of writing, PROM is trading at $11.07.

Altcoin Sherpa's analysis underscores the dynamic nature of the altcoin market and the potential for substantial price fluctuations. Investors should proceed with caution and conduct their own due diligence before making any investment decisions.