AI Cryptos Rise Despite Nvidia's Death Cross

Nvidia has triggered the “death cross”: this dramatic name for a simple crossing of moving averages could well signal the end of a historic rally. But while Wall Street worries, AI cryptos shrug (and sometimes raise their prices). A three-part dive into this strange ballet.

When Nvidia sneezes, does AI cough?

A few days ago, Nvidia made AI crypto tokens plunge because, yes, we know: Nvidia is the king of AI, the boogeyman of the bears, the idol of tech addicts. So when its stock shows a “death cross”, this technical signal where the 50-day moving average drops below the 200-day moving average, analysts sound the alarm bells.

On March 20, this grim crossing appeared after a surge of +948% since October 2022. Enough to make even the boldest tremble. But… does this signal in the stock world really impact AI cryptos? Spoiler: not so much. And this is where it gets interesting.

AI cryptos are playing the free electrons

Render (RENDER) and Bittensor (TAO), two well-known figures of the AI clan, rose by +4.06% and +2.88% respectively after the appearance of the “death cross” on Nvidia. Not bad for a sector supposed to tremble. One might think it’s a coincidence, but this isn’t the first time AI cryptos have taken a tangent.

During the last “death cross” alert on Nvidia, the price had plunged by 47% in the following six months. And yet, today, the tokens seem to say: “Thank you, but no thanks.” This shows that crypto loves to dance out of step.

Towards a desynchronization?

This decoupling could well announce a new era. AI cryptos are starting to carve their own path, boosted by real use cases, an ever-vibrant Web3 hype, and ultra-connected communities. Their destiny may no longer be tied to Nvidia or the tech giants.

Of course, caution is still in order – we aren’t going to play fortune tellers. But the autonomous energy of AI projects suggests that they might continue their rise… even if Wall Street is sulking. After all, in the crypto jungle, survival instinct sometimes outweighs a trader’s graph.

So, Nvidia can do its funeral cross choreography, AI tokens may have decided to dance their own tango. Especially since 44% of experts bet on a forthcoming surge of these tokens ! What if we were entering an era where AI crypto would no longer follow the NASDAQ masters? To be continued… closely.