True to the real-world scenario, AI tokens are among the high performers early in this cycle.
We can anticipate the market betting on the future with strong AI projects whose price action represents both strength and fair value.
We've tracked a few star players in the crypto x AI sector here, here, and here.
While most of the broader crypto market has traded down in the last few weeks, we think some AI coins are uniquely positioned to break out in June.
Whether you are an experienced or beginner crypto trader, you'll find this report helpful as we present the opportunities and clear directions for taking advantage of the momentum.
Let's dive in.
Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. We also advise setting a risk tolerance level in terms of capital allocation while trading. The industry standard is no more than 2% of your portfolio at any given time. This means if you are in an open position already, it's advised not to take on more trades, which will lead you to be overexposed. Allow current trades to be settled; there will be more opportunities around the corner.
Fetch.ai (FET)
Fetch AI is a platform using artificial intelligence to help automate everyday tasks. It is a blockchain-based system where digital representations of you, called 'digital twins' or Autonomous Economic Agents (AEAs), can negotiate deals on your behalf.It is also one of the three AI projects merging to form ASI (Artificial Superintelligence).
You can read our initial research report on FET here
Technical analysis
We have a daily floor being held nicely at around $2.40, which has seen multiple prints of clear supply and demand in recent history for this asset, especially significant demand.
This LOI (Line of Interest) is where we would look to capitalise on this play.
Play for traders
- Scenario 1: Consider entering at market here with the clear intra-day signs of confirmation being shown.
- Scenario 2: Place a limit order on the LOI of $2.24, which has a high probability of being triggered.
Risk and reward
Scenario 1 and Scenario 2 share the same stop loss. We believe this conviction would be invalidated if we began to trade beneath the LOI and the next key level below.This stop loss gives room for the $2.00 mark to come into play, but below that, we would want to be out.
- Stop loss: $1.893, resulting in a 15% loss if the stop loss is triggered
- Take profit: $3.475 to give a 55% upside if TP is achieved
Render (RNDR)
Render, often referred to as the Nvidia of crypto, is the first decentralised GPU rendering platform.It aims to democratise the GPU market by providing on-demand access to high-performance GPU Nodes around the world.
Technical analysis
RNDR is beginning to form the infamous wedge pattern, which has many bullish signs psychologically within the market.
It represents bearish momentum being beaten by consistent demand. When it runs out fully, demand beats supply, resulting in a nice pop-up to the key psychological round number of $10.
This level has historically seen supply and demand-oriented for RNDR here as well.
Play for traders
- Scenario 1: Consider entering at market here with the clear intra-day signs of confirmation being shown.
- Scenario 2: Place a limit order on the LOI of $10, which has a high probability of being triggered.
Risk and reward
Scenario 1 and Scenario 2 share the same stop loss.We believe this conviction would be invalidated if RNDR began to trade beneath the LOI and the next key level below.
- Stop loss: $9.000, resulting in a 10% loss if the stop loss is triggered
- Take profit: $13.900, delivering a 40% upside if the TP is achieved
Near Protocol (NEAR)
From a purely-investment standpoint, we don't have much to say about Near.But as a trade opportunity, this is looking hot.
Technical analysis
NEAR has caught our eye recently as it started to perform very strongly compared to the rest of the market.
Price is at a standoff just above the recent significant swing high. The price point of $7.500, a nice round number, is creating a demand floor. This price point was actually very strong resistance for this asset, so the break above and retest are significant. If this floor finds enough demand to break out of the level above around $9.000, it could be a great entry point for a huge upside.
Play for traders
- Scenario 1: Consider entering at market here with the clear intra-day signs of confirmation being shown.
- Scenario 2: Place a limit order on the LOI of $7.500, which has a high probability of being triggered.
Risk and reward
Scenario 1 and Scenario 2 share the same stop loss: $7.000. We use this stop loss because if the price were to come down, we would look to reposition.Breaking the bullish daily trend line significantly may suggest a new secure level could be found to capitalise on with more conviction.
- Stop loss: $7.000, resulting in a 12% Loss if the stop loss is triggered
- Take profit: $11.9517, delivering a 50% upside if TP is achieved
Position sizing
Let's use a $50k account, for example.
We would advise using no more than 2% margin at 10x leverage.
This means you can actually use $1,000 to borrow $10,000.
If the trade goes right and you hit TP, you stand to make $5000 on the trade.
If the trade goes against us and you hit stop loss, your max downside will be $1,500
Essentially, you're working with 2.5% of your total portfolio for a chance to gain record and an additional 10% portfolio gain.
If you were to trade this with a spot position, you may approach this slightly differently.Given that these are more mid/higher-risk assets across the space, we suggest no more than a 20% allocation spot.
Cryptonary's take
With the AI narrative being a global powerhouse in tech, finance, and crypto, we are taking some trading bets on this sector.The three coins profiled today display promising price action that you can capitalise on. If you follow the recommended risk-management plan, you should be fine, regardless of how the trade runs out.
For investors, if you aren't currently exposed to FET you may want to revisit our research and use this opportunity to start building your spot bag allocation as well.
We can't wait to share updates on how this trade went.
Cryptonary, Out!
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