Artificial Intelligence (AI) crypto investors have been closely following Nvidia’s stock price movements for a long time. However, these two markets were not always in a direct correlation. Could the latest developments be worrying for AI Token?
Critical decrease signal in Nvidia shares
Chip production giant Nvidia (NVDA) gave a significant signal. The “Death Cross” formation, which is generally considered as a negative indicator for markets, has occurred in Nvidia shares. Finally, this signal, which emerged in April 2022, led to a 47 %decline in the share price in six months.
Barchart, the financial data platform, shared an X (Twitter) sharing of 23 March, “NVDA has created Death Cross for the first time since April 2022. When the last took place, the share price fell 47 %in six months,” he said.
This technical formation occurs when the 50 -day moving average (SMA) of an asset falls below the 200 -day moving average and is often considered as the beginning of a long -term decrease trend.
Will Artificial Intelligence -oriented Altcoin projects follow the decline?
Although Nvidia’s share price signal as of March 21, some artificial intelligence -oriented crypto currencies continued to rise.
For example, Render (RNDR) gained 4.06 %, Bittensor (TAO) increased by 2.88 %and artificial Superintelligigence Alliance (FET) increased by 2.88 %. These data once again reveal that there is no direct correlation between Nvidia and AI Token.
In the past, some market observers suggested that AI crypto currencies have parallel with the price movements of Nvidia. Especially in the second quarter of 2024, Nvidia’s close to 70 %rise had a positive effect on the AI Token. However, such direct connections are not always seen.
Strong Nvidia earning reports not affect the crypto market?
In the first quarter of 2024, Nvidia’s revenues increased by 18 %compared to the previous quarter. However, this positive development was not reflected in the same extent to AI crypto currencies. Crypto investors expect the growth in Nvidia to activate the AI token market, while others think that this expectation is overly exaggerated.
In the last month, Nvidia shares fell by 9.66 %. In the same process, the total market value of AI and large data crypto projects decreased by 23.70 %.
Has the balloon exploded in the crypto market?
Some analysts think that AI HYPE is now starting to go out and only projects that offer real use will survive in the long run. Crypto investor Cryptocosta used the following statements on the X (Twitter) sharing of 22 March:
The AI craze has already ended. It is time for projects that really offer market solutions and generate income.
Near Protocol (Near), the largest AI Token in the industry, lost 59 %in the last 12 months and fell to $ 2.70. Nevertheless, a survey shows that the interest of investor for AI crypto currencies has not completely lost.
How warm to investors are looking at artificial intelligence projects?
According to a survey conducted by Coingecko between 2,632 people between February and March 2025:
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25 %of the investors look at AI Token.
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19.3 %Investor is partially optimistic about AI Token.
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29 %investor has a neutral view.
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26.3 %investors, on the other hand, indicate a negative or completely pessimistic opinion on AI crypto currencies.
Former Binance CEO Changpeng “CZ” ZHAO commented on the relationship between AI and crypto:
Crypto may be a payment method for AI, but every artificial intelligence project does not need its own token. If you do not have a scale, do not remove a new token. The important thing is not token, but the service you offer.
