Is the ASI Token Merger a Buy the Rumor, Sell the News Event?

• FET and AGIX prices drop despite the upcoming ASI token merger announcement.
• Fetch.ai’s FET trading volume surged 36% despite a recent price decline.
• Market analyst Sherpa sees potential for AGIX to rally past its 200 EMA.

Fetch.ai (FET) revealed on Wednesday that its long-awaited ASI token merger with Ocean Protocol (OCEAN) and SingularityNET (AGIX) will commence on July 1st.

However, the initial excitement surrounding this two-phase process appears to have subsided, as both FET and AGIX prices have experienced significant declines following the announcement.

At press time, Fetch.ai was trading at $1.64, down 3.95% from the previous day. Similarly, Ocean Protocol and SingularityNET have also declined, with OCEAN falling 3.1% to $0.6544 and AGIX decreasing 4.89% to $0.6715, according to CoinMarketCap.

Fetch.ai Price Analysis

Recently, the FET token surged to a new peak of $1.84, eclipsing its previous high of $1.74 set on June 20. However, this upward momentum was short-lived as the token has since tumbled, reflecting a 28% decline over the past month and a 4% drop in the last week.

FET/USD 1-Day Chart (Source: CoinMarketCap )

This downward trend also impacted FET’s market capitalization, which has fallen by 3.95% to $1.389 billion. Interestingly, despite the price dip, FET’s trading volume surged by over 36% in the last 24 hours, reaching $297.216 million. This suggests that, while FET’s price may be volatile, there remains robust trading activity and interest in the token.

FET Key Levels to Watch

According to data from TradingView, if the bearish trend in FET continues, the asset may find support at the $1.065 level. Moreover, a drop below this point could lead to further declines, potentially reaching the February low of $0.51. 

FET/USD 24-Hour Chart (Source: TradingView )

On the other hand, market analyst Altcoin Sherpa foresees significant resistance for FET around the $1.90 mark. Sherpa’s analysis suggests that surpassing this resistance could set the stage for a rally, with FET aiming for the $2.49 target.

Such a move would signal a bullish trend reversal, potentially attracting more investors and driving the price higher, possibly challenging its all-time high of $3.8, achieved on March 28.

AGIX Token Performance

Similar to FET, the AGIX token has also experienced a substantial decline, falling by over 27% on the monthly chart. Its market capitalization and trading volume have also decreased significantly, reflecting a lack of investor confidence. 

AGIX/USD 1-Day Chart (Source: CoinMarketCap )

At press time, AGIX’s intraday market capitalization stands at $864.607 million, marking a 4.83% dip, while its 24-hour trading volume has declined by 9.34% to $96.103 million.

Potential for a Bullish Reversal

Despite the prevailing negative sentiment surrounding the AGIX token, market analyst Sherpa remains optimistic about its potential upward trajectory, especially with the upcoming migration events on the horizon.

Sherpa’s analysis indicates that AGIX is currently hovering around the 200 exponential moving average. Should it break through this critical level, it could ignite a bullish rally, driving the price higher and rekindling investor confidence in the project.