AI Cryptos Face Bearish Pressure from Nvidia
November 11th marked a turning point for AI-focused cryptocurrencies. As Nvidia, the undisputed leader in artificial intelligence chips, experienced a significant stock correction, the repercussions immediately impacted the entire crypto-AI ecosystem. Internet Computer (ICP) and NEAR Protocol were particularly exposed to this wave of liquidations, reflecting the growing interconnection between traditional tech markets and digital assets.
Nvidia’s decline acted as a bearish catalyst for the entire AI crypto sector. Internet Computer and NEAR Protocol recorded corrections exceeding market averages, demonstrating their sensitivity to movements from the semiconductor giant. This correlation stems from these projects’ positioning in the decentralized artificial intelligence niche.
Institutional investors quickly adjusted their positions, triggering a cascade of liquidations on AI tokens. Trading volume exploded on these assets, signaling intense selling pressure. Technical support levels broke one after another, fueling the bearish momentum. Implied volatility on options for these cryptocurrencies surged, reflecting the prevailing uncertainty.
The market structure deteriorated rapidly. Order books showed marked asymmetry between supply and demand, with massive sell walls blocking any rebound attempts. Market makers widened their spreads, increasing transaction costs and reinforcing bearish pressure.
ICP and NEAR: Two Architectures, Same Fate
Internet Computer and NEAR Protocol present solid fundamentals but couldn’t escape the widespread sell-off. ICP, which aims to decentralize cloud infrastructure, remains strongly associated with AI narratives despite its broader positioning. NEAR Protocol, with its sharding protocol and ambitions in decentralized AI, also suffers the consequences of this sector rotation movement.
Outlook and Technical Zones to Monitor
NEAR remains exposed to a drop into the demand zone at $2.30. Caution is still warranted for this crypto.
For its part, ICP has bounced in its crucial zone at $5.80. Now, if the breakout occurs, ICP could target $9.70 in the coming days, representing a gain of over 50%.
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To conclude, Nvidia’s situation remains crucial for the evolution of AI cryptos. A stabilization of the tech stock could ease selling pressure and allow for a consolidation phase. Savvy investors are also watching correlations with Bitcoin and Ethereum, whose performance still influences the entire crypto market.
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