2 AI Tokens to Avoid Right Now

The AI cryptocurrency sector continues to attract significant capital, promising decentralized intelligence and agentic economies. 

Yet not every project translates hype into sustainable value. Many tokens face persistent technical headwinds, liquidity challenges, and waning narrative momentum. 

In a market where conviction matters, Internet Computer (ICP) and Kite (KITE) currently stand out as two to approach with extreme caution—or avoid altogether—based on weakening fundamentals and clear bearish technical setups.

Internet Computer (ICP): Ambitious Vision, Lingering Execution Risks

Internet Computer, developed by DFINITY, is a Layer-1 blockchain engineered to host smart contracts and decentralized applications at internet-native speeds. 

It aims to replace traditional cloud infrastructure with a fully on-chain alternative, incorporating AI capabilities through Chain Fusion and advanced compute layers.

While the technology is innovative, adoption has lagged behind expectations.

Recent developments underscore ongoing challenges. As of April 1, 2026, ICP trades at $2.323 (+0.87%), reflecting a 30% year-to-date gain but still trading at a staggering 99.5% discount to its 2021 all-time high over $700. 

Price predictions for 2026 range from $2.50 to $5.89, yet analysts highlight structural risks, including a small developer ecosystem, execution hurdles, and potential inflationary pressure from token emissions. 

Mission 70 tokenomics adjustments have been cited as a needed catalyst, but progress remains slow.

The ICPUSD daily chart paints a cautious picture. After a multi-month downtrend from the $9.83 high, price has consolidated near the $2.00 support.

MACD (12,26) remains negative at -0.016 and -0.053, signaling sustained bearish momentum. RSI (14) sits at a neutral-to-bearish 44.66, with no clear bullish divergence. 

The overall structure lacks conviction for a meaningful reversal.

Kite (KITE): AI Agent Infrastructure Meets Sector Cooldown

Kite positions itself as the first AI payment blockchain—a Layer-1 purpose-built for autonomous agents. Using Proof of Artificial Intelligence (PoAI) consensus, it enables verifiable identity, programmable governance, and native stablecoin transactions. 

The project raised $18 million in Series A funding led by PayPal Ventures and General Catalyst, bringing total funding to $33 million—an impressive vote of confidence in its agentic vision.

However, near-term realities are less favorable. On March 27, 2026, OKX announced its intention to delist the KITE margin trading pair, reducing liquidity and heightening forced-selling risk. 

The token has slipped roughly 30% from its early-March high near $0.322, now trading at $0.15565 (+0.04%). Broader AI token enthusiasm has cooled, with profit-taking dominating.

Technically, the KITEUSD chart shows clear distribution. After a sharp rally into February-March, price has rolled over with multiple bearish RSI divergences explicitly marked.

MACD displays a fresh negative histogram, while the RSI at 35.74 hovers near oversold levels without reversal confirmation. The structure suggests continued downside risk toward lower supports.

Final Outlook: Caution Over Conviction

ICP and KITE may still hold long-term promise, but their current setups reflect more uncertainty than opportunity. 

ICP remains weighed down by slow adoption and a deeply discounted valuation, while KITE is navigating liquidity setbacks and fading short-term momentum. 

With technical indicators still leaning bearish and catalysts lacking strength, stepping aside could be the more strategic move in the near term. Could waiting for a clear shift in momentum provide a better entry point?

More Must-Reads:

• 2 AI Tokens to Buy Right Now
• 21Shares Researcher Warns Token Launches Are Broken; Here’s Why
• History in the Making: Moody’s Rates First Bitcoin-Backed Revenue Bonds