AI-Focused Altcoins Expected to Pull Back, Says Renowned Analyst

Prominent crypto analyst and Altcoin Sherpa predicts a downward trend for two AI-related altcoins, Render (RNDR) and Bittensor (TAO). Sherpa anticipates RNDR to retest its support level at the 0.618 Fibonacci level before experiencing a bullish reversal, while TAO is expected to drop to its 0.50 Fibonacci level for support. Additionally, the analyst suggests that Prom (PROM) could witness a significant sell-off if it fails to maintain its support level around $9.45.

Cryptocurrency Analyst Forecasts Price Declines for AI-Focused Altcoins

Renowned cryptocurrency analyst Altcoin Sherpa, esteemed for his accurate predictions in the altcoin market, anticipates that two prominent altcoins within the artificial intelligence (AI) sector face impending price corrections.

Render (RNDR)

Altcoin Sherpa, utilizing social media platform X, conveyed to his vast following of 215,200 followers that Render (RNDR), a project leveraging Graphics Processing Units (GPUs), may revisit the 0.618 Fibonacci level before experiencing an upward reversal.

"RNDR: These periods present exceptional opportunities during bull markets, allowing investors to accumulate promising projects at crucial levels. Enter positions from current levels down to $6 with confidence," advised Altcoin Sherpa.

Traders commonly employ Fibonacci retracement levels to identify potential support and resistance zones. Presently, RNDR trades at $9.06.

Bittensor (TAO)

Another altcoin on the analyst's watchlist is Bittensor (TAO), a decentralized blockchain platform centered on machine learning and AI. Altcoin Sherpa anticipates that TAO will decline to the 0.50 Fibonacci level to find support.

"TAO: The Binance listing triggered a 'sell-the-news' reaction. We expect further price depreciation towards $400, coinciding with the 0.50 Fibonacci level and the 200-day exponential moving average.

Despite the price reacting favorably around that level, we would prefer to witness it sustain there. Significant volatility in that region suggests $320 could be the next target if $400 fails to hold," remarked Altcoin Sherpa.

Notably, Binance recently announced the commencement of trading services for TAO. At the time of writing, TAO trades at $479.76.

Prom (PROM)

The final altcoin under Altcoin Sherpa's scrutiny is the interoperability protocol Prom (PROM). He predicts that PROM may endure a significant sell-off if it fails to maintain range support at approximately $9.45.

"PROM: While PROM has breached below its range low, it did find some support at the 200-day exponential moving average. Generally, this represents an area of interest. We would like to see PROM trade back within its range.

If PROM closes below the range, we anticipate a substantial pullback. However, we are maintaining our current holdings," stated Altcoin Sherpa.

Currently, PROM trades at $11.07.

It is imperative to emphasize that this analysis is provided for informational purposes only and should not be construed as financial advice. Investors are strongly advised to conduct their own due diligence and consult with qualified professionals before making any investment decisions.