AI Token Surge Signals Potential Altcoin Rally This Week

• AI tokens have experienced a surge, pushing the AI token market capitalization to approximately $28.1 billion.
• Although there have been gains in certain altcoins, the altcoin season index remains at 33%, indicating that a comprehensive altcoin rally is unlikely in the near term.

The crypto market observed upward movement over the past week, with Bitcoin [BTC] climbing back to the $60,000 threshold.

This bullish trend has triggered substantial rises in various altcoins, especially within the artificial intelligence (AI) token sector.

These developments have ignited conversations about a potential altcoin rally in the upcoming week within the crypto space.

AI tokens spearhead progress in the forthcoming crypto week

A review of the market capitalization for AI tokens shows a persistent upward trend, setting a favorable outlook for the upcoming crypto week.

Notable AI tokens including Internet Computer (ICP), Artificial Superintelligence Alliance [FET], and Injective [INJ] have reported remarkable growth in the past week.

Currently, the market capitalization of AI tokens is roughly $28.1 billion, demonstrating a clear positive trend.

If these tokens continue their current momentum, we might witness further growth in market capitalization in the crypto week ahead.

Nonetheless, it remains to be seen if this will be enough to trigger the long-awaited altcoin rally.

Is a new altcoin rally imminent?

Evaluating crucial pricing data, several altcoins have exhibited marked growth over the past 90 days. Bittensor [TAO] skyrocketed by 87.1%, while Sui [SUI] increased by 75.7%.

Additionally, Aave [AAVE] surged by 72.4%, and Ripple [XRP] gained 19.6%.

These notable gains imply that these altcoins could persist in their upward trajectories in the crypto week ahead.

Despite these positive signals, a significant altcoin rally may still be improbable in the near future.

Data from Blockchain Center shows that the current altcoin season index stands at 33%. For an altcoin season to be officially recognized, 75% of the top 50 coins must outperform Bitcoin over the preceding 90 days.

Source: blockchaincenter

At the time of writing, only around 16 tokens have shown positive trends over the past 90 days, including those referenced earlier.

This suggests that while certain altcoins are performing well, the overall market may not be ready for a comprehensive altcoin rally in the coming week.

In Summary

The upcoming week in the crypto market holds promise for ongoing growth in AI tokens and select altcoins. Nevertheless, market signals indicate that a broad altcoin rally might not happen just yet.

Investors should vigilantly monitor market trends and conduct necessary research before making investment choices in the forthcoming week.