Sell the News: OpenAI’s $6.6 Billion Raise Hits AI Coins TAO and FET Badly

OpenAI’s latest funding could be a great development for the Sam Altman-led company. However, for Artificial Intelligence (AI) coins, including Bittensor (TAO) and Artificial Superintelligence Alliance (FET), it is a classic “sell the news” event.

On previous occasions, developments like this have triggered a substantial hike in the prices of this altcoin. But today, it is not the same as FET and TAO prices, which are down. But what’s next after this development?

OpenAI Value Rises, But TAO Goes the Other Way

On October 2, Open AI raised $6.6 billion from several investors. According to Reuters, Microsoft, the company’s largest backer, led the round. The report also saw a notable investment from Nvidia, the world’s leading Graphics Processing Unit (GPU) supplier.

“The funding came in the form of convertible notes, and the conversion to equity hinges on a successful structural change into a for-profit that would no longer be controlled by the non-profit board and the removal of the cap on returns for investors,”  the Reuters report stated

However, unlike previous times when news triggered a hike in AI coins market cap, that did not happen. As of this writing, TAO’s price has decreased by 8.55% while trading below $500. FET is another AI coin affected by the development as its value tanked nearly 7%.

Read more: How To Invest in Artificial Intelligence (AI) Cryptocurrencies?

Three days ago, TAO showed readiness to climb toward $700. However, according to the Balance of Power (BoP), buyers’ strength has become weak. This decline gives sellers the upper hand.

Hence, TAO’s price could face another downturn. With TAO’s price at $498.30, the Fibonacci retracement indicator suggests that the token, which is one of the AI coins with the highest market cap, can drop to $465.70.

Meanwhile, TAO’s price might rebound if sellers get exhausted and bulls capitalize on the fatigue. In that circumstance, the altcoin’s value might jump to $617.90.

FET Price Could Drop Again

FET’s situation is not exactly different from that of TAO. As of this writing, FET’s price is $1.40 and has now dropped below the 20-day Exponential Moving Average (EMA). The EMA places great significance on recent price trends in order to measure trend direction.

When the price is above the EMA, the trend is bullish. However, since the AI coin’s value is below the threshold, it indicates a bearish trend. Considering the altcoin’s position, it might find it challenging to rebound. Instead, the FET’s price might continue to trend downward.

Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024

If that happens, the token could decline to $1.22. However, FET could rise to $1.74 if AI coins eventually see a bullish reversal largely due to increased capital flow.