The AI crypto segment has shown mild gains this week, with DeFi and meme coins leading the market rally. However, AI tokens demonstrate strong potential to become top performers in the next capital rotation. Technical analysis suggests a bullish trend ahead for three major AI cryptocurrencies: NEAR Protocol (NEAR), Fetch.ai (FET), and Internet Computer (ICP).
AI Tokens on the Rise
The market capitalization of AI cryptocurrencies has surged by 17% in May, reaching $38 billion. While DeFi and meme coins have dominated recent rallies, AI tokens are poised for significant growth as capital rotates across market segments.
Key factors driving AI token growth:
- Increased institutional interest in AI-driven blockchain projects.
- Upcoming announcements from major AI developers (OpenAI, Google Gemini, DeepSeek).
- Technical breakout patterns across leading AI tokens.
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NEAR Protocol Eyes Breakout
Current Price: $2.94
May Performance: +20%
NEAR is forming an inverse Head and Shoulders pattern, with a breakout above $3 likely triggering further bullish momentum.
Technical Indicators:
- MACD nearing a bullish crossover.
- Support levels: $2.64 (May 18 low).
- Resistance levels: $3 (neckline), $3.50 (next supply zone).
On-Chain Metrics:
- TVL Growth: Up from $124M (April) to $173M.
- DEX Volume: Steady above $17M.
Price Prediction: A sustained breakout above $3.50** could push NEAR toward **$4.20 (+20%).
Fetch.ai (FET) Targets $1
Current Price: $0.91
May Performance: +21%
FET is approaching the $1 psychological level, supported by a rising trendline.
Technical Indicators:
- MACD confirms bullish crossover.
- Key Resistance: $1.04–$1.22 (710M FET supply zone).
- Support: $0.82 (trendline).
Investor Sentiment:
- Immediate resistance ($0.93–$1.02) holds minimal supply, increasing breakout chances.
Price Prediction: A push above $1.25 (50% Fib retracement) could yield 25% gains.
Internet Computer (ICP) Aims for $6
Current Price: $5.51
May Performance: +10%
ICP shows strong momentum, nearing a 7-day high of $5.84.
Technical Indicators:
- RSI: 55 (bullish momentum).
- Resistance: $6.08 (23.6% Fib level).
- Support: $5.01 (weekly low).
Price Prediction: A breakout above $6** could extend gains toward **$7.50.
FAQs
1. Why are AI tokens gaining traction?
AI tokens benefit from rising institutional interest and advancements in blockchain-based AI applications.
2. What’s driving NEAR’s price surge?
NEAR’s TVL growth and technical breakout pattern suggest strong upside potential.
3. Can FET reach $1.50 soon?
If FET breaks $1.25**, a move toward **$1.50 becomes plausible amid bullish momentum.
4. Is ICP undervalued?
With strong RSI momentum, ICP could rally if it clears the $6 resistance.
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Conclusion
AI tokens NEAR, FET, and ICP exhibit strong technical setups, positioning them for potential breakouts. Investors should monitor key resistance levels and market sentiment for optimal entry points.
Disclaimer: This content is for informational purposes only and not financial advice. Always conduct your own research before investing.