Trader Predicts Short-Term Decline for AI Altcoins

A prominent trader is raising concerns about the future of altcoins in the artificial intelligence (AI) crypto sector, warning that the bullish momentum may be reaching its peak.

The trader believes that many of the major AI-related cryptocurrencies are showing signs of a short-term decline.

Bluntz, who is known for utilizing Elliott Wave theory in his technical analysis, notes that several AI-focused altcoins have recently pulled back after hitting the peak of the final wave in a months-long bullish trend.

According to Elliott Wave theory, asset prices typically move in five waves, followed by a three-wave correction.

Bluntz foresees a shift in the market, stating, “I think the AI hype will face some rude awakenings in the coming months.”

Two tokens that Bluntz highlights as examples of this trend are AIXBT by Virtuals (AIXBT) and Fartcoin (FARTCOIN). AIXBT, which is an AI-driven market agent, and Fartcoin, a memecoin incorporating AI for content generation, are both nearing the end of their bullish run, according to Bluntz.

While initially thinking AIXBT might experience a more significant correction, Bluntz suggests that Fartcoin could see the steeper decline, pointing out that a surge in bagholders for Fartcoin has led him to reconsider his outlook.