Chip-making giant Nvidia’s (NVDA) stock has formed a significant bearish signal known as the ‘death cross,’ raising questions about its implications for the AI crypto sector. According to markets data platform Barchart, this pattern last appeared in April 2022, leading to a nearly 50% decline in Nvidia’s shares over the following six months.
A death cross occurs when the 50-day simple moving average (SMA) of an asset’s market price falls below the 200-day SMA. Despite Nvidia’s stock forming this bearish signal before the trading week closed on March 21, several crypto AI tokens have risen since then. For instance, Render (RENDER) increased by 4.06%, while Bittensor (TAO) and Artificial Superintelligence Alliance (FET) both rose approximately 2.88%, based on CoinMarketCap data.
Nvidia has been closely monitored by AI crypto traders. While some analysts link AI crypto token surges to Nvidia’s performance, such as its nearly 70% rally ahead of Q2 earnings in 2024, there have also been instances where no clear correlation emerged. Following Nvidia’s Q1 2024 revenue jump of 18% from Q4 2023, some AI token traders expressed disappointment that strong results did not similarly affect AI crypto token prices.
Crypto trader CryptoCosta noted in a March 22 X post, “The whole AI hype has already died down, now it’s time for those who provide market solutions and have revenue.” Over the past month, the market capitalization of top AI and big data crypto tokens fell by 23.70%. Near Protocol (NEAR), the largest token in this sector by market cap, has retraced almost 59% over the past 12 months, now trading at $2.70.
Despite this, nearly half of crypto pundits remain bullish on crypto AI token prices. Of the 2,632 respondents surveyed by CoinGecko between February and March, 25% were “fully bullish,” and 19.3% indicated they were “somewhat bullish” for crypto AI tokens in 2025. Around 29% of respondents were neutral, while a combined 26.3% were either somewhat bearish or bearish.
Former Binance CEO Changpeng “CZ” Zhao recently stated, “While crypto is the currency for AI, not every agent needs its own token.” He added, “Agents can take fees in an existing crypto for providing a service. Launch a coin only if you have scale. Focus on utility, not tokens.”
In February, Sygnum mentioned in an investment report that while AI agents have gained remarkable traction so far, they have struggled to prove their worth beyond speculation.
— news from Cointelegraph