The Fetch AI (FET) price continued retreating this week as the token merger process started. It plunged to a low of $1.2670 on Tuesday morning, its lowest swing since June 19th. It has fallen by over 30% from its highest point in June, giving it a market cap of over $3.18 billion.
Fetch, Ocean, and Singularity merger starts.
One of the biggest stories in the crypto industry has been the merger of Fetch AI, SingularityNET, and Ocean Protocol, three large AI networks.
Fetch AI offers AI agents to developers, while SingularityNET is an AI marketplace for platforms like Rejuve and SingularityDAO. Ocean Protocol, on the other hand, is at the intersection of AI and big data.
The three companies are merging to create the Artificial Superintelligence Alliance, whose token will be known as ASI. Their goal is to become the industry’s biggest AI blockchain and take advantage of the fastest-growing theme in the sector.
Phase one of the merger started on Monday. This phase included rebranding the three tokens into Artificial Super Intelligence as OCEAN and AGIX merged into Fetch, the bigger platform.
The second phase will be community onboarding, which will focus on member onboarding for users who opted to self-custody their funds. In this stage, ASI will be deployed across all chains.
In the final phase, AGIX and OCEAN holders will exchange their tokens for FET, followed by being delisted from crypto exchanges.
Therefore, the FET token crashed as investors watched how this novel merger would happen. Some people also worry about the potential security risks during the merger process. There are concerns about the network’s future after the merger since historical data shows that most mergers don’t work.
Artificial Superintelligence Alliance token price analysis
The daily chart shows that the Fetch price has been in a freefall after peaking at $3.483 in March. It has also reacted negatively to the recent merger with Ocean Protocol and Singularity.
The token has now crashed below the 61.8% Fibonacci Retracement point. Also, it has moved below the 50-day and 200-day Exponential Moving Averages (EMA). There is also a likelihood that it will form a death cross pattern when the two averages cross each other.
In technical analysis, a death cross is one of the most popular bearish signs. Therefore, the FET token will likely continue falling as sellers target the next key support at $1.1052, its lowest point on June 10th. A drop below that level will point to more downside, with the next level to watch at $0.884, the 78.2% retracement point.
