Cardano-based artificial intelligence marketplace SingularityNET (AGIX) has seen its price rise by 11% in the last 24 hours, making it today’s top performer in the top 100 cryptocurrencies by market cap. The sudden rally started shortly after rumors surfaced that Elon Musk wants to build a ChatGPT competitor.

As the 4-hour chart below shows, AGIX has seen a massive green candle of close to 30%, before the gains were wiped out in large part by an equally massive 4-hour candle. Still, the token price is up 11% in the last 24 hours of trading.

Here’s Why AGIX Is Rallying

The AGIX rally comes at a time when Twitter and Tesla CEO Elon Musk has been musing out loud on Twitter about the dangers of artificial intelligence (AI). Two days ago, Musk wrote:

But, all things considered with regard to AGI existential angst, I would prefer to be alive now to witness AGI than be alive in the past and not. […] Having a bit of AI existential angst today.

About 12 hours ago, at the same time that AGIX’s price started to soar, a rumor surfaced that Elon Musk is looking to develop a ChatGPT competitor. In an exclusive report, The Information reported that Musk has created a new AI research lab led by Igor Babushkin, a researcher who recently left Alphabet’s DeepMind AI.

The report is based on two people with direct knowledge of the effort and a third person with knowledge of the talks. According to the statements, the lab’s main focus is to develop an alternative to ChatGPT.

Source: @nonmayorpete & @theinformation https://t.co/uTJmOSwVyA

— Rowan Cheung (@rowancheung) February 28, 2023

While SingularityNET obviously has nothing to do with Elon Musk’s initiative, today’s pump is emblematic of the “AI narrative” that has seen AI-focused tokens rise dramatically in value in January through early February due to the hype surrounding ChatGPT by OpenAI.

Price Rejected At Crucial Resistance

The AGIX price rally ended abruptly at the $0.55 resistance and initiated a bounce down south to $0.4488. Since then, however, AGIX has again picked up steam and is recording an upward trend.

As long as the SingularityNET token holds above $0.37, the price continues to be in bullish territory. To the upside, resistance at $0.551, $0.605, and $0.667 are key. A daily close above the $0.55 resistance would be massively bullish and bring the all-time high in the $0.67 area back into focus.