Nvidia's "death cross" has no impact on AI cryptos

This dramatic name for a simple crossing of moving averages could well signal the end of a historic rally. But while Wall Street worries

Nvidia's stock price has triggered the “death cross,” a technical signal that occurs when the 50-day moving average drops below the 200-day moving average. This grim milestone has come after a surge of +948% since October 2022. As Nvidia is a major player in the AI space, some analysts believe that this technical indicator could also affect the price of AI crypto tokens. However, our analysis shows that the two might not be correlated after all.

Top Gainers (24h)

* Render (RNDR) - +4.06%

* Bittensor (TAO) - +2.88%

A few days ago, we reported that the famous “death cross” had appeared on Nvidia's stock. This technical signal, which is said to presage a bear market, occurs when the 50-day moving average drops below the 200-day moving average.

This grim scenario unfolded on March 20, following a meteoric rise of +948% since October 2022 for the king of semiconductors and AI. A performance that even the boldest traders wouldn't dare dream of.

But does this technical indicator, which has filled Wall Street analysts with gloom, really impact the crypto sphere, especially AI tokens? Not really, and that's what makes it interesting.

While Nvidia's stock price is plummeting and analysts are lamenting the 'bearish signal,' two well-known figures from the AI clan, Render (RNDR) and Bittensor (TAO), managed to rise by +4.06% and +2.88% respectively after the appearance of the “death cross”. Not bad for a sector that's supposed to be shuddering in fear.

One might be tempted to say it's a coincidence, but this isn't the first time AI cryptos have decided to take a tangent.

During the last ‘death cross' alert on Nvidia, the price of the token crashed by 47% in the following six months. And yet, today, the tokens seem to be saying: "Thank you, but no thanks." This shows that crypto prefers to dance out of step.

This desynchronization might announce a new era. Boosted by real use cases, an ever-vibrant Web3 hype, and ultra-connected communities, AI cryptos are starting to forge their own destiny, no longer linked to Nvidia or the tech giants.

Of course, a bit of caution is still needed – we aren't going to play fortune tellers. But the autonomous energy of projects like Render and Bittensor suggests that they might continue their rise despite the gloomy predictions of traders and the fibonomical numbers that fill their graphs.

In the crypto jungle, survival instinct sometimes outweighs a trader's pessimistic vision. So, Nvidia can do its funeral cross choreography, and AI tokens may have decided to dance their own tango. Especially since 44% of experts bet on a forthcoming surge of these tokens! What if we were entering an era where AI crypto would no longer follow the NASDAQ masters? To be continued… closely.