A widely followed trader is issuing a warning on altcoins in the artificial intelligence (AI) crypto sector.
The trader pseudonymously known as Bluntz tells his 312,000 followers on the social media platform X that the “big” AI-related crypto assets are signaling the possibility of the bullish run coming to an end over the short term.
According to the analyst who regularly applies the Elliott Wave theory in his technical analysis, lots of the AI-related altcoins have retraced from the peak of the final wave of a bullish trend that started months ago. The Elliott Wave theory states that the main trend of the price of an asset moves in a five-wave pattern while a correction occurs in a three-wave pattern.
“Going to be some rude awakenings for the AI hype in the coming month in my opinion.”
According to Bluntz, aixbt by Virtuals (AIXBT), a crypto market-focused virtual AI agent, and Fartcoin (FARTCOIN), a memecoin that incorporates an AI framework for the purposes of generating ideas and content, are “pretty clear” examples of crypto assets that are on the tail end of a bullish trend that started months ago.
On which between AIXBT and FARTCOIN will have the deeper correction, Bluntz says,
“I actually thought AIXBT looked more bearish, but then all the FARTCOIN bagholders came out of the woodwork and I realized that’s probably the one that dumps more.”
AIXBT is trading at $0.740 at time of writing, down by 21% since the all-time high reached last week.
FARTCOIN is trading at $1.54 at time of writing, down by 36% since the all-time high reached last week.
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