Chip-making giant Nvidia (NVDA) just triggered a bearish technical pattern that has some analysts worried, not just for the stock but also for the broader AI crypto sector, which’s often surged in its shadow. The pattern, known as a “Death Cross,” historically signals deeper market corrections, raising the question: Are AI tokens next?
The last time Nvidia formed this cross, it lost nearly 47% over six months. Could AI-driven crypto assets be poised for a similar retracement?
On March 21, Nvidia’s chart closed with its 50-day simple moving average (SMA) falling below the 200-day SMA — a textbook Death Cross. Market watchers at Barchart quickly flagged the warning, reminding traders that April 2022’s similar pattern sparked a steep sell-off.
Given Nvidia’s pivotal role in the artificial intelligence narrative, the timing of this signal is hard to ignore. AI crypto traders have frequently tracked NVDA’s performance, with notable rallies occurring ahead of the company’s earnings releases.
But whether this correlation holds or breaks could define the next phase for AI-linked digital assets.
AI Crypto Tokens Hold Steady — But for How Long?
Interestingly, some AI-focused crypto tokens shrugged off the bearish signal — at least initially. Render (RNDR) rose 4%, while Bittensor (TAO) and Artificial Superintelligence Alliance (FET) posted gains of nearly 3%.
Still, those short-term moves mask a bigger picture: AI and big data token market caps have dropped nearly 24% in the past month. Leading projects like Near Protocol (NEAR) have seen brutal sell-offs — down 59% year-over-year.
As excitement around generative AI cools, cracks are forming in the “AI token” narrative — forcing traders to ask: Which projects have real utility, and which are riding the hype?
Sentiment is shifting fast. Some crypto voices, like CryptoCosta, argue the AI token bubble has popped.
“It’s time for projects that provide real market solutions and generate revenue to rise — the rest will fade,” he warned.
The speculative nature of many AI tokens is becoming harder to ignore. A February report by Sygnum flagged the same, while AI agents gained traction, few have proven their worth beyond market speculation.
A recent CoinGecko survey of 2,600 respondents reflects the market’s divided outlook. Nearly 44% remain bullish on AI crypto into 2025, but 26% are already leaning bearish — signaling a growing split between optimists and skeptics.
With Nvidia now flashing warning signals, the coming months could test these convictions — especially if the broader AI narrative falters.
The Takeaway
Nvidia’s Death Cross is more than just a stock chart signal, it’s a reflection of market sentiment shifting after a year of AI-fueled euphoria. AI crypto tokens, once flying high alongside NVDA, now face a moment of reckoning.
As liquidity tightens and hype fades, survival may depend on utility, revenue, and real-world use cases, not just speculative promises. The next wave of AI crypto winners won’t be driven by buzzwords but by projects that deliver.
