Nvidia’s stock price forms ‘death cross’ — Will AI crypto tokens follow?

Chip-making giant Nvidia’s (NVDA) stock has recently generated attention due to a significant bearish signal, known as a “Death Cross.” This technical pattern occurs when an asset’s 50-day simple moving average (SMA) drops below its 200-day SMA, a situation last seen in April 2022 when Nvidia shares subsequently plunged by 47% over the following six months. Market data platform Barchart highlighted this development in a March 23 post, indicating that the tech landscape, particularly the AI crypto sector, could endure ripple effects stemming from Nvidia’s performance.

As Nvidia’s stock opened the trading week on March 21, several AI crypto tokens experienced gains—a curious contradiction to Nvidia’s bearish trend. Render (RENDER) noted a 4.06% increase, while both Bittensor (TAO) and Artificial Superintelligence Alliance (FET) rose by approximately 2.88%, according to CoinMarketCap data. The question arises: Does Nvidia’s stock downturn predict a similar trajectory for AI crypto tokens, or do these tokens possess independent growth factors?

While there’s often speculation connecting Nvidia’s stock performance with movements in AI crypto, the correlations have not always been consistent. For instance, Nvidia’s nearly 70% rally ahead of its Q2 earnings for 2024 did not directly translate into a similar uptick in AI crypto token prices. Even after Nvidia announced an 18% revenue bump in Q1 2024 compared to Q4 2023, some traders noted a surprising lack of responsive movements within the AI token market.

Over the past month, Nvidia’s stock witnessed a notable decline of 9.66%. Meanwhile, some crypto analysts speculate that the AI crypto sector may be experiencing a form of market saturation. Crypto trader CryptoCosta remarked on March 22 that “the whole AI hype has already died down,” stressing that the focus would soon shift to tokens that provide real utility and revenue generation.

The AI and big data crypto market has not been immune to broader trends, with its market capitalization dropping by 23.70% in recent weeks. Near Protocol (NEAR), the largest token by market cap in this sector, has seen nearly a 59% decrease over the past year, currently trading at around $2.70.

Despite the downturn, optimism persists among crypto investors. A recent survey of 2,632 participants conducted by CoinGecko from February to March indicated that nearly half expressed bullish sentiment regarding AI crypto tokens’ future prices. Specifically, 25% were “fully bullish,” with an additional 19.3% identifying as “somewhat bullish” for 2025.

In contrast, market discussions have highlighted the need for practicality in the AI crypto space. Former Binance CEO Changpeng “CZ” Zhao commented that while crypto may serve as an ideal currency for AI, not every agent within the sector necessarily requires its own token. He emphasized the importance of focusing on utility rather than solely pursuing token issuance.

Recent investment reports from Sygnum indicated a growing interest in AI agents, noting that while they have gained traction, proving their value beyond speculative interest remains a challenge. As the landscape continues to evolve, the interplay between traditional tech giants like Nvidia and the cryptocurrency market will require close observation—especially amidst fluctuating macroeconomic conditions and the ever-evolving dynamics of investor sentiment.

For those navigating this intricate interface of technology, finance, and speculative opportunity, vigilance and informed analysis remain paramount.