AI Tokens: Buy the Dip? Santiment Sees Profit Potential Despite Downturn

Market intelligence platform Santiment issued a buy signal today for crypto tokens in the AI sector, specifically highlighting Fetch.ai (FET) and SingularityNET (AGIX). The report recommends that investors closely monitor AI projects over the coming weekend and into next week.

This bullish call is based on growing social media activity surrounding AI projects like Synthetix (SNX) and positive regulatory developments for tokens like FET, OCEAN, AGIX, and Bittensor (TAO). Santiment highlights a historical correlation between such spikes in social volume and subsequent price increases for these tokens.

However, the broader crypto market downturn is currently impacting the AI tokens as well. At the time of writing, FET is down over 12% in the last 24 hours. Similar price declines are observed in AGIX, Bittensor (TAO), Render (RNDR), and Near Protocol (NEAR). Injective (INJ) stands out as a bright spot, with a 23% gain over the past week, defying the broader market correction.

Despite the short-term bearish trend, Santiment maintains its optimistic outlook for the AI crypto market. They believe that investors who buy the dip this weekend and early next week have the potential for significant profits.

Supporting this optimism, AI tokens emerged as a highly profitable investment category in the first quarter of 2024. A report by CoinGecko revealed that investors saw an average return of 222% on AI tokens during that period.

Leading the pack were AIOZ Network (AIOZ) with a staggering 480.2% increase and FET with a 378.3% gain. Even the lowest performer, OriginTrail (TRAC), delivered a 74.9% return in Q1. The CoinGecko report suggests that large-cap AI tokens particularly benefited from the surge in investor interest in the AI sector as a whole.

While the immediate future of the AI crypto market remains uncertain, Santiment’s analysis suggests that long-term investors may find value opportunities amidst the current price dips.