AI-related tokens such as Bittensor (TAO), Near Protocol (NEAR), and Internet Computer (ICP) all surged during Tuesday's trading session, following President Donald Trump's announcement of plans to vigorously promote innovation in the energy and AI sectors. In response to this move, major American tech companies like Google and Meta quickly committed to investing tens of billions of USD, creating a significant boost for the market.
According to Reuters, Google has signed a $3 billion agreement to purchase electricity from hydropower plants in Pennsylvania, while also announcing a $25 billion investment plan in data center infrastructure over the next two years. Not to be outdone, Meta CEO Mark Zuckerberg also revealed plans to spend hundreds of billions of USD to expand the scale of data centers serving AI.
Notably, CaffeineAI – an AI application platform capable of automatically generating content, operating on the Internet Computer ecosystem – has just launched its early access version. This product is expected to popularize the development of Web3 applications even for those without programming knowledge. Thanks to this boost, ICP not only surpassed a significant resistance level but is also opening up sustainable growth opportunities in the long term.
Bittensor faces long-term trend resistance
Bittensor (TAO) slightly adjusted down by nearly 1% on Wednesday, after hitting a significant resistance zone formed from the two most recent peaks on 10/12 and 22/5. This pullback occurred right after TAO surpassed the $300 mark in June – a sign that buying pressure is returning to the market.
If TAO can close the day above the trend line around $440, the upward momentum may continue to expand towards the 50% Fibonacci retracement level, corresponding to the $458 mark (calculated from the peak of $748 on 12/6 to the bottom of $167 on 7/4).
Currently, the three exponential moving averages (EMA) of 50, 100, and 200 days are converging – indicating a high likelihood of a golden cross pattern emerging. At the same time, the MACD indicator along with the signal line has surpassed the 0 threshold, combined with gradually increasing green histogram bars – a clear sign that bullish momentum is strengthening.
However, if TAO fails to maintain the green and closes below the support zone, the correction trend may recur, aiming to retreat to the 200-day EMA at the level of $371.
Near Protocol bounced from the 100-day EMA, aiming for the level of $6.23
After three consecutive up sessions, NEAR adjusted slightly down by 1% on Wednesday. Nevertheless, this AI token still maintained its position above the 100-day EMA at $2.55, after successfully breaking through the resistance line connecting two peaks on 12/6 and 10/5.
If the recovery momentum continues to be maintained throughout the day, NEAR is likely to challenge the next resistance area at the 200-day EMA around $3.04.
The MACD indicator along with the signal line has now both surpassed the 0 threshold, reinforcing the bullish reversal signal and confirming the breakout on the technical chart. However, investors should be cautious: if the MACD line turns back down below the signal line, a short-term correction may occur.
In a negative scenario, if NEAR loses the support level at the 100-day EMA at $2.55, the downtrend may reestablish and pull the price back towards the 50-day EMA at $2.37.
The CaffeineAI event boosts ICP to break through the resistance line
The price of ICP surged over 4% during Tuesday's trading session, fueled by news of CaffeineAI launching its early access version. This event provided sufficient momentum for the altcoin to break through the long-term resistance line – connecting two significant peaks established on 12/6 and 10/5.
Currently, ICP is maintaining trading above the 100-day EMA at $5.41 – a positive sign for the short-term trend. If the upward momentum continues, the next target will be the 200-day EMA at $6.23.
Similar to AI-related tokens, the MACD indicator on the technical chart of ICP is signaling a strengthening uptrend, with continuously expanding green histogram bars – indicating that buying momentum is becoming stronger.
However, if the price unexpectedly reverses and falls below the 100-day EMA – which is also the old resistance level that has just been broken – then the breakout signal will be negated. At that point, ICP may revert to a downtrend and test support at the 50-day EMA around $5.17.
