- FET faces bearish patterns, risking a potential 40% price drop.
- Bullish momentum hinges on overcoming $1.71 resistance for upward movement.
Fetch.ai (FET) has gained market attention recently, surging by 3% in the last 24 hours to trade at $1.36, despite a 5% drop in trading volume. However, FET remains 21% lower than its value a month ago, reflecting challenges in maintaining momentum. On January 9, FET hit a nine-day low of $1.258.
Since testing the $2 mark in December 2024, FET has struggled to replicate its early 2024 performance, when it soared to $3.47 for the first time since its launch. The token’s price was buoyed during that period by the Artificial Superintelligence Alliance merger with SingularityNET (AGIX) and Ocean Protocol (OCEAN). However, this collaboration did not result in sustained upward momentum.
Moreover, technical indicators signal potential bearish movements. The Relative Strength Index (RSI) remains above oversold levels but has dipped below the midpoint, suggesting declining bullish sentiment. On the weekly chart, a bear flag pattern has formed, indicating a potential 40% drop to $0.81 if critical support levels fail to hold. Additionally, a head-and-shoulders pattern on the daily chart raises concerns of further declines if the $1.19 neckline is breached.
Signs Of Bullish Recovery
Despite these bearish patterns, there are signs of investor optimism. Data from Coinglass shows a 92.5% surge in trading volume over the past day, with 80.23% of traders on Binance building long positions. Exchange outflows of $1 million worth of FET tokens in the same period suggest accumulating interest, which typically creates upward momentum.
Technical analysis highlights that FET recently broke out of a consolidation zone and retested the 200 Exponential Moving Average (EMA), indicating potential upside movement. With the RSI at 56, FET remains below the overbought zone, leaving room for growth.
Should FET hold above $1.40 and flip the $1.71 resistance into support, it could rally to $2.00, invalidating the bearish outlook. However, failure to sustain these levels could lead to significant declines. Investors remain watchful as market dynamics unfold.
Highlighted News Of The Day
Whale Cashes Out $4.61M in Profits as WIF Drops 10% to $1.50
