SingularityNET: Why a ChatGPT hype could be AGIX’s only backing
- As the ChatGPT buzz reduced, so did the AGIX value.
- Widespread sentiment towards AGIX hit extreme lows.
Around the beginning of the year, Artificial Intelligence (AI) tokens like SingularityNET [AGIX] took a large part of the positive sentiment shown towards any cryptocurrency. It is a statement of fact that the rise of ChatGPT played a crucial role in the position held by investors at that time.
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But a month and some weeks down the line, the perception initially enjoyed had taken a downturn. According to information from Santiment, the AGIX weighted sentiment could not avoid hitting weekly crests between December 2022 and the first week of February.
The metric spikes when the social volume is on the high side and dips occur when the overall sentiment is pessimistic. At the time of writing, the weighted sentiment was in the negative region at -0.058. This condition implies that the investors were not as optimistic before the now-fading ChatGPT hype.
As per its volume, on-chain data showed that AGIX was still able to maintain a $146 million. Nonetheless, it was still a truncated amount compared to the series of $500 million achieved earlier.
This means that the aggregate amount of AGIX transactions had significantly decreased irrespective of losses or gains recorded by the traders.
But what could be responsible for this downfall? Well, a few weeks back, ChatGPT caught the eye of users across several sectors. And the attention helped the AI product reach unprecedented milestones.
Due to the trend, ChatGPT was able to maintain a perfect score of 100 on the Google Trends chart. Although the product remained at a high trend score, the decline to 82 would surely impact the AI token hype. Interestingly, AGIX had looked independent of the Bitcoin [BTC] correlation when it made over 100% rise in value in a week.
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AGIX price action
Meanwhile, the technical perspective puts AGIX in tight short-term consolidation. This was because of the Directional Movement Index (DMI).
As of this writing, the +DMI (green) and -DMI (red) closed at 20.86 and 21.44 respectively. The third dynamic line (yellow), known as the Average Directional Index (ADX) had no strong support for an uptick or price decrease despite being at 39.52.
Additionally, the Exponential Moving Average (EMA) projected that AGIX could establish a possible uptrend in the long term. This occurs when the 200 EMA (orange) is able to crossover the 50 EMA (blue) as seen above.