Arthur Hayes, the founder of BitMEX, recently updated his portfolio strategy, saying he would pivot to meme coins, among other sectors.

Recent data shows this redirection may not be working out as the crypto executive exits several positions with losses.

Arthur Hayes Exits PEPE and MOG Positions at a Loss

Only days after pivoting to meme coins, Arthur Hayes exited his position on PEPE and MOG, losing $40,000 in the process. The BitMEX executive moved his PEPE and MOG holdings to a centralized exchange on Thursday during the early hours of the Asian session.

The loss came as Hayes’ PEPE and MOG portfolios dropped in value to $460,000. This happened after he bought 24.39 billion PEPE valued at $252,000 on September 27, as part of a portfolio diversification strategy centered on meme coins. Reportedly, he also purchased $250,000 worth of MOG meme coin.

“Arthur Hayes, the founder of BitMEX, said he was optimistic about Memecoin on September 27 and bought $250,000 of PEPE and $250,000 of MOG. Today, these PEPE and MOG were transferred to CEX, and their value has dropped to $460,000. The sale resulted in a loss of $40,000,” Wu Blockchain corroborated.

Read more: A Comprehensive Guide on Tracking Smart Money in the Crypto Market.

The transaction had attracted attention, as is characteristic of heavy purchases among renowned personalities. Accordingly, PEPE rallied by 20% on Arthur Hayes’ posts.

Despite closing his meme coin position, Hayes remains invested in Pendle (PENDLE) and Aethir (ATH). This suggests his continued alignment with the DePIN (decentralized physical infrastructure network) and real-world asset (RWA) narratives, which have emerged as two of the most prominent trends in 2024.

Arthur Hayes’ meme coin portfolio losses are closely tied to the broader market downturn, which BeInCrypto attributes to geopolitical tension. Specifically, the ongoing conflicts involving Israel and Iran have raised concerns among investors, leading to capital withdrawals from riskier assets like Bitcoin.

Read More: What Are Meme Coins?

Meme coins typically rally when Bitcoin shows bullish momentum. The opposite is happening now, as seen on Thursday, when meme coin market capitalization fell nearly 4%, according to CoinGecko, while Bitcoin retraced from $65,000 to just above $60,000.

OpenAI’s latest funding could be a great development for the Sam Altman-led company. However, for Artificial Intelligence (AI) coins, including Bittensor (TAO) and Artificial Superintelligence Alliance (FET), it is a classic “sell the news” event.

On previous occasions, developments like this have triggered a substantial hike in the prices of this altcoin. But today, it is not the same as FET and TAO prices, which are down. But what’s next after this development?

OpenAI Value Rises, But TAO Goes the Other Way

On October 2, Open AI raised $6.6 billion from several investors. According to Reuters, Microsoft, the company’s largest backer, led the round. The report also saw a notable investment from Nvidia, the world’s leading Graphics Processing Unit (GPU) supplier.

“The funding came in the form of convertible notes, and the conversion to equity hinges on a successful structural change into a for-profit that would no longer be controlled by the non-profit board and the removal of the cap on returns for investors,”  the Reuters report stated

However, unlike previous times when news triggered a hike in AI coins market cap, that did not happen. As of this writing, TAO’s price has decreased by 8.55% while trading below $500. FET is another AI coin affected by the development as its value tanked nearly 7%.

Read more: How To Invest in Artificial Intelligence (AI) Cryptocurrencies?

Three days ago, TAO showed readiness to climb toward $700. However, according to the Balance of Power (BoP), buyers’ strength has become weak. This decline gives sellers the upper hand.

Hence, TAO’s price could face another downturn. With TAO’s price at $498.30, the Fibonacci retracement indicator suggests that the token, which is one of the AI coins with the highest market cap, can drop to $465.70.

Meanwhile, TAO’s price might rebound if sellers get exhausted and bulls capitalize on the fatigue. In that circumstance, the altcoin’s value might jump to $617.90.

FET Price Could Drop Again

FET’s situation is not exactly different from that of TAO. As of this writing, FET’s price is $1.40 and has now dropped below the 20-day Exponential Moving Average (EMA). The EMA places great significance on recent price trends in order to measure trend direction.

When the price is above the EMA, the trend is bullish. However, since the AI coin’s value is below the threshold, it indicates a bearish trend. Considering the altcoin’s position, it might find it challenging to rebound. Instead, the FET’s price might continue to trend downward.

Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024

If that happens, the token could decline to $1.22. However, FET could rise to $1.74 if AI coins eventually see a bullish reversal largely due to increased capital flow.

BNB’s price has dropped by 8.72% over the past week, signaling a significant downturn for the coin. The recent price action suggests that bearish momentum is building, with technical indicators pointing to further potential downside.

Key levels of support and resistance are now crucial, as BNB hovers near important price points that could either stabilize the decline or lead to more losses.

BNB Current Trend Is Strong

BNB’s price has declined by 8.72% over the past seven days, reflecting significant downward pressure on the token. This is interesting because there was hype surrounding the release of Changpeng Zhao, Binance’s founder. However, it doesn’t seem to have moved the needle on BNB’s price.

This decline is further supported by its ADX (Average Directional Index), which currently reads 40.88.

The ADX measures the strength of a trend, regardless of its direction, and a value above 25 signals the presence of a trend, while values over 40 indicate a very strong trend. In BNB’s case, an ADX of 40.88 points to a solid and growing downtrend, suggesting that the bearish momentum is gaining strength.

Read more: How To Buy BNB and Everything You Need To Know

The ADX helps traders assess whether the market is trending strongly or not — values between 20 and 25 typically indicate a weak or uncertain trend, while anything over 25 confirms a clear trend direction. On September 30, BNB’s ADX was at 22, indicating a fairly mild trend at that time.

However, the sharp increase to 40.88 in just a few days demonstrates that the bearish momentum has significantly strengthened, signaling that the selling pressure has accelerated and the market sentiment has become decidedly negative.

BNB Ichimoku Cloud Shows The Downtrend Is Here

Looking at the Ichimoku Cloud for BNB, the price action shows signs of weakness and continuation of the downtrend. BNB has broken below the Kumo (cloud), which is a strong bearish signal, indicating that sellers are in control. The Ichimoku Cloud serves as both a support and resistance area, and with the price trading below it, this reinforces bearish sentiment.

Additionally, the leading span (Senkou Span A and B) forms the cloud ahead, which appears to be widening slightly with a downward slope. This widening cloud suggests that future resistance is strengthening, making it harder for BNB to break back above the cloud.

The Tenkan-sen (blue line) has crossed below the Kijun-sen (red line), another bearish signal known as a “bearish crossover,” which further confirms the downward trend. These two lines can act as dynamic support and resistance levels, and as long as the price stays below them, the downtrend remains intact.

The Chikou Span (green line) is also below the price from 26 periods ago, reinforcing that the current market sentiment is bearish. Overall, with BNB breaking below key Ichimoku levels and the cloud acting as overhead resistance, the chart suggests that BNB is likely to continue its downtrend unless a significant reversal occurs.

BNB Price Prediction: Potential 12% Correction Coming

BNB’s short-term EMA lines have just crossed below its long-term EMA lines, forming a “death cross”. That is a strong bearish indicator often associated with a potential market downturn. The death cross typically signals a transition from bullish momentum to bearish momentum as the shorter-term price trend weakens and dips below the long-term trend.

EMA, or Exponential Moving Average, lines are technical indicators that smooth out price fluctuations by giving more importance to recent price data. This allows traders to assess the current market direction better. In the case of BNB, this crossover suggests that selling pressure is intensifying, and the token could see further downside in the near term.

At present, BNB is testing a strong support level at $527, which is crucial for holding off further declines. If this support fails, there is a possibility of a deeper correction, with the price potentially falling to $471, representing a further 12% drop from current levels.

Read more: BNB: A Comprehensive Guide to What It Is and How It Works

Such a move would reflect sustained bearish momentum and could attract more selling activity. However, if buyers step in and the market sentiment shifts, BNB has the potential to reverse its current downtrend.

In that case, the first major resistance would be at $562, and a break above this level could propel the price to test the next significant resistance at $598, offering a potential gain of 11.7%. This pivot point will be key for traders watching for either a bearish continuation or a possible bullish recovery.