NVIDIA's Q3 2024 fiscal year earnings announcement, scheduled for Wednesday, 20th November, is anticipated to significantly impact the prices of AI-themed cryptocurrencies. Given NVIDIA's prominent role in the AI boom, its financial performance historically influences the AI crypto market, sometimes triggering price rallies, and at other times resulting in a "sell the news" effect. This analysis examines three AI-based cryptocurrencies poised for potential volatility following the announcement.
Render (RENDER): A GPU Compute Platform
Render (RENDER), a leading GPU compute platform for generative AI, is a prime candidate for significant price movement. Prior to NVIDIA's Q2 earnings, RENDER experienced a rally, only to subsequently decline after the report's release. Currently trading at £6.00 (approximately $7.59 USD), RENDER has seen a 27% price increase over the past seven days. Technical analysis reveals a recent breakout from a descending triangle pattern, suggesting a bullish trend. The Moving Average Convergence Divergence (MACD) indicator is also positive, reinforcing this bullish momentum.
If this positive momentum persists, and NVIDIA's Q3 results are favourable, RENDER could potentially reach £7.00 (approximately $8.83 USD), or even £9.40 (approximately $11.86 USD) in a highly bullish scenario. Conversely, a "sell the news" reaction could see the price fall to £4.35 (approximately $5.47 USD).
Grass (GRASS): A New Entrant with Potential
Grass (GRASS), a Decentralized Physical Infrastructure Network (DePIN) project launched in October, makes its first appearance on this watchlist due to notable market interest. Unlike RENDER, GRASS has experienced a 10.31% decline in the past week. Analysis of the one-hour chart using the Parabolic Stop And Reverse (SAR) indicator shows the indicator currently above the price, suggesting potential for further downward pressure. This could push the price below £1.88 (approximately $2.36 USD).
However, increased buying pressure ahead of the NVIDIA announcement could propel GRASS towards £2.62 (approximately $3.30 USD). The direction will largely depend on investor sentiment surrounding the NVIDIA report and the overall market conditions.
PAAL AI (PAAL): A Historically Correlated Asset
PAAL AI, an Ethereum-based project, exhibits a strong historical correlation with NVIDIA's earnings announcements, typically mirroring the broader AI crypto market's reaction. Currently, PAAL has seen a 12.35% price increase in the last 24 hours, fuelled by increased demand. However, the price remains below both the 20-day and 50-day Exponential Moving Averages (EMAs), indicating potential resistance to further upward movement.
Should buying pressure intensify alongside a positive NVIDIA report, PAAL's price could continue its upward trajectory. Conversely, a decrease in trading volume could reverse this trend, leading to a potential price drop.
Conclusion:
The upcoming NVIDIA earnings announcement presents a significant catalyst for volatility within the AI cryptocurrency market. While RENDER displays a bullish outlook based on recent price action and technical indicators, GRASS and PAAL exhibit a higher degree of uncertainty. Investors should exercise caution, conduct thorough independent research, and consider the inherent risks associated with cryptocurrency investments before making any trading decisions. This analysis is for informational purposes only and does not constitute financial advice.