agix

At first glance, the price action and on-chain data for AI marketplace SingularityNET (AGIX) looks extremely bullish recently. However, closer analysis of the technical indicators suggests a near-term reversal could be imminent.

Evidence of Skyrocketing On-Chain ActivityAccording to crypto analytics firm Santiment, SingularityNET has seen tremendous on-chain growth this past week. The number of non-zero token addresses has reached an all-time high of over 93,000 as large transaction volumes skyrocket.

In addition, crypto analyst Zyre points out that 99% of AGIX token holders are currently in profit, with 40% having held for over one year. He suggests the still low market cap presents major upside potential.

The Catch: Overbought Technicals Signal Price Retracement Despite the bullish on-chain and fundamental activity, AGIX appears extremely overextended from a technical perspective for the time being.

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As one example, the Relative Strength Index (RSI) indicator shows a reading of 94. Such extreme overbought levels suggest an imminent pullback is likely before any further major upside price action.

In addition, a large gap has emerged between the 50 and 100 simple moving averages (SMAs) and the current price. The price will likely need to retrace back towards the $0.35 level where those SMAs are located to establish healthier support.

Looking at the price action too, the price has not restested the last broken major support at around $0.35. We may see a retracement back to theis level which is around where the 50 and 100 SMAs also are.

In summary, while long-term holders are clearly still accumulating and network growth remains strong, traders may want to wait for a technical price correction before entering new AGIX positions at this stage of the rally. Allowing the charts to cool off could set the stage for more sustainable gains.

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The post Why Now May Not Be the Best Time to Buy SingularityNET’s AGIX Despite Multiple Bullish Indicators appeared first on CaptainAltcoin.