Crypto narratives are undergoing major shifts this week, with AI tokens, Real-World Assets (RWA), and meme coins all seeing significant corrections. The AI sector, once a top-performing category, has seen its market cap drop 42% in the past month, with major tokens like FET and RENDER extending their losses.

Meanwhile, the RWA sector has fallen from $72 billion to $55.5 billion in just three days, though regulatory clarity in the US could provide long-term support. Meme coins have also taken a hit, with the top 10 largest tokens all down at least 22% in the last week.

AI Tokens

The artificial intelligence sector has been one of the hardest-hit areas in the crypto market over the past month. After reaching a peak market cap of $60 billion on January 6, it has now fallen to $32.8 billion, reflecting a sharp decline.

Some of the biggest AI tokens have taken heavy losses in the past seven days, with FET down 32.2%, RENDER dropping 27.21%, and VIRTUAL losing 35%.

The correction, which began roughly two weeks ago with DeepSeek’s impact, has extended across the sector, pushing many AI tokens to multi-month lows.

With the AI crypto market cap down nearly 42% in 30 days, this week could be crucial in determining whether these assets stabilize and get ready for a rebound or face further downside.

Real-World Assets (RWA)

The Real-World Assets (RWA) sector has experienced a sharp decline, with its market cap dropping from $72 billion on January 31 to $55.5 billion in just three days.

Despite this downturn, RWA remains a significant asset class within crypto, currently comprising nine projects with market caps above $1 billion. Key players such as Chainlink, Avalanche, Hedera, Mantra, and Ondo continue to drive the sector’s development.

Although the recent correction has impacted RWA valuations, the sector continues to be one of the most interesting crypto narratives. It stands to gain from potential regulatory advancements in the US, a strong promise made by Donald Trump.

A clearer and more favorable regulatory framework could unlock new opportunities for RWA applications. With institutional giants like BlackRock and Morgan Stanley showing interest, the sector is already drawing mainstream attention, further strengthening its long-term growth prospects.

Meme Coins

The meme coin sector, one of the biggest crypto narratives in the market, has taken a major hit in today’s liquidation chaos. The top 10 largest meme coins are all down at least 22% in the past week. PENGU has led the losses, dropping 46%, while only five meme coins now maintain a market cap above $1 billion.

Over the last 30 days, the entire meme coins market has shrunk by 37%, bringing its total valuation down to $68 billion. This sharp correction highlights a shift in sentiment, with meme coins losing the momentum they had in previous months.

Recent data from Kaito suggests that meme coin mindshare has now fallen below that of DeFi, a trend that hasn’t occurred in months.

This shift implies that investors may be rotating funds away from meme coins and into more traditional DeFi assets or stablecoins.

With lower engagement and declining prices, meme coins are facing increased selling pressure. Unless a new catalyst emerges, their market dominance could continue to fade.

Hedera (HBAR) price has experienced a sharp decline, dropping more than 13% in the last 24 hours and 19% over the past week. This downturn has pushed HBAR’s market cap down to $9 billion, causing it to lose the crucial $10 billion threshold.

Technical indicators, including a rising ADX and a bearish Ichimoku Cloud setup confirm the increasing strength of the current downtrend. With a recent death cross forming on its EMA lines, HBAR now faces critical support levels. At the same time, any potential recovery would need to reclaim key resistances to reverse the current bearish momentum.

Hedera ADX Indicates the Current Downtrend Is Strong

Hedera Average Directional Index (ADX) is currently at 43.3, a sharp rise from 11.4 just three days ago. This significant increase suggests that the strength of HBAR’s current trend is intensifying.

The ADX indicator measures trend strength without indicating direction, meaning it can apply to both upward and downward trends. Given HBAR’s ongoing downtrend, this surge in ADX reflects growing momentum in the current price movement, reinforcing the prevailing bearish sentiment.

ADX values range from 0 to 100, with readings below 20 indicating a weak or non-existent trend, while values above 25 signal a strengthening trend. When ADX surpasses 40, it suggests a strong trend in place. With HBAR ADX now at 43.3, the downtrend appears to be gaining traction rather than weakening.

This could mean further downside pressure unless a significant shift in buying activity occurs. A high ADX in a downtrend often signals strong bearish momentum, making it difficult for the price to reverse in the short term without a clear change in market structure.

HBAR Ichimoku Cloud Shows a Bearish Setup

The Ichimoku Cloud on the HBAR chart signals a clear bearish trend. The price is currently trading below the cloud, which indicates a downtrend. Additionally, the cloud ahead is red, suggesting that bearish momentum is expected to continue. The Tenkan-sen (blue line) is below the Kijun-sen (red line), reinforcing the short-term bearish structure.

Meanwhile, the Chikou Span (green line) is also below the price action, confirming the overall downward bias. The recent sharp drop and subsequent weak rebound indicate that sellers remain in control.

For HBAR price to reverse its bearish trend, it would need to reclaim the cloud and establish support above it. However, with the future cloud projected as bearish and the price failing to show signs of a strong reversal, further downside remains likely.

If selling pressure continues, HBAR may struggle to break above resistance levels near the Kijun-sen. On the other hand, a decisive push above the cloud could shift momentum, but at the moment, the Ichimoku Cloud setup favors continued downside movement.

HBAR Price Prediction: Can Hedera Fall Below $0.1 In February?

HBAR’s recent price action has taken a bearish turn, with its EMA lines forming a death cross in the last two days. This bearish crossover, where the short-term EMAs fall below the long-term EMAs, signals a potential continuation of the downtrend. If selling pressure persists, Hedera price could test its next key support at $0.125, a level that could determine whether further downside is imminent.

A break below this support would open the door for deeper declines, with $0.053 being the next major level of interest. Given the current structure, the bearish momentum remains strong unless a significant shift in trend occurs.

However, if HBAR price manages to regain its bullish momentum from previous months, reclaiming $0.25 as support would be the first sign of strength. A successful breakout above this level could lead to a move toward $0.29, a key resistance that, if breached, would likely fuel further upside.

Beyond that, HBAR could attempt to reclaim levels above $0.30 and even push toward $0.35, where stronger resistance would come into play. For this scenario to unfold, HBAR would need sustained buying pressure and a reversal in trend indicators, as the current setup still favors the downside.

According to Satoshi Action Fund CEO Dennis Porter, Utah is leading the race to establish a Bitcoin reserve in the US. Porter claimed that the state’s short legislative calendar encourages speedy action.

Additionally, Utah has a digital asset task force that continues operations outside of the calendar. This task force actively coordinates strategy for a Bitcoin reserve, which rushes into action when the normal schedule resumes.

How Soon Could Utah Establish a Bitcoin Reserve?

The race to establish a Bitcoin reserve has been heating up among 15 US states. President Trump promised to establish such a reserve on the campaign trail, but his “crypto stockpile” executive order fell somewhat short.

Still, there is a fight at the state and federal levels to create a Bitcoin reserve, and Satoshi Action Fund CEO Dennis Porter is betting on Utah being the first.

“There’s a very good shot that Utah will be first because they have such a short legislative calendar. It is only 45 days. It’s either sink or swim in 45 days. No one else has a faster calendar, and no one else has more political momentum and willpower to get it done,” Porter claimed in an interview with Senator Cynthia Lummis.

Wyoming senator Cynthia Lummis is a leading figure in the broader campaign’s federal legislative efforts. However, she concurred with Porter’s assessment that Utah will be the first state with its own Bitcoin reserve, not Wyoming.

Utah has a few advantages in this race that may propel it ahead of several other initiatives. A Utah legislator proposed a Bitcoin reserve in late January, which passed through committee in a little over a week.

Already, this is much speedier than most US states. However, Porter noted another key advantage. The state has maintained a digital asset task force since 2022.

In other words, the state may have a short legislative session, but Representatives can use this task force as a unit to strategize outside of the session.

Utah has been a pro-crypto state for several years now, and its economic policies and guardrails are potentially more prepared for a Bitcoin reserve than any other state. With a quick burst of political willpower, it could deliver on these plans.

These proceedings are looking quite bullish for Bitcoin’s price. Even while other political developments have wrought havoc on the crypto market, legislative efforts like this help conserve BTC momentum.