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Crypto AI Fetch.ai Rebounds After 65% Drop: Analysis June 27, 2024.
After reaching its ATH, Fetch.ai faced selling pressure that brought its price to around $1. Let’s look at the future outlook for FET together.
Fetch.ai (FET) pricing situation.
Since the rise of the AI sector, Fetch.ai has not escaped the clutches of investors. In fact, the AI cryptocurrency has increased by over 6,400% since its lowest level reached in November 2022. FET first moved from $0.05 to $0.60, then consolidated around $0.18 before bouncing back and marking an ATH just below $3.50. Since reaching this level, the cryptocurrency has experienced bearish pressure that has weighed on the price of FET. It should be noted that this pressure has been fueled by the overall decline of the cryptocurrency market. Nonetheless, the cryptocurrency has seen its price more than halve.
Recently, it seems that the AI cryptocurrency has found support in the identified value zone around $1.11. This allowed the Price of Fetch.ai to benefit from the buying interest, supporting the medium and long-term upward trend of the cryptocurrency. Indeed, it can be seen that it is thanks to this momentum that Fetch.ai has reintegrated its support at $1.3 and its 200-day moving average. Moreover, this increase was strong enough to allow the oscillators to bounce and therefore show a slight recovery in the dynamics of FET. All these elements naturally suggest a resurgence of purchasing power on Fetch.ai.
The current technical analysis was conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today he is a coach at Family businessa community of thousands of independent traders active since 2017. There you will find lives, educational content and support on the financial markets in a professional and friendly atmosphere.
A Closer Look at Derivatives (FET/USDT)
The open interest of FET/USDT perpetual contracts has generally followed the direction of the underlying price. This indicates a healthy market, where buyers capitulate when the FET price falls. Liquidation data supports these claims, mostly showing the liquidation of buy positions to sellers. This phenomenon even suggests short-term pessimism about the price of FETs, as illustrated by the negative funding rate. Each of these elements therefore demonstrates dominant selling pressure on Fetch.ai’s perpetual contracts.
The liquidation heat map for FET/USDT over three months reveals that the liquidation zone located between $1.8 and $2 was breached from below and unfortunately did not attract any buying interest. Currently, the most significant active liquidation zone is above the current price, namely around $2.3. Below the current price the recent zone of $1.3 can be highlighted. A price approaching these levels could trigger a massive influx of orders, increasing the risk of a period of increased volatility. These areas therefore represent a crucial point of interest for investors.
Fetch.ai (FET) price hypothesis.
- If the FET price were to remain above $1.11, a bullish recovery to $2.3 could be expected. The next levels to consider if the bullish movement were to continue would be $2.8, a price level which, once surpassed, would open the door to the FET ATH at $3.5. At this stage, this would represent an increase of more than 117%.
- If FET price fails to sustain above $1.11, a return to around $0.70 – $0.65 could be considered. The next support to consider if the bearish move continues would be around $0.50. At this point, that would represent a decline of about 67%.
Conclusion
Since the rise of the AI industry, Fetch.ai has attracted the attention of investors, recording spectacular growth from its lowest levels. Despite bearish pressure due to the overall cryptocurrency market trend, Fetch.ai has shown signs of recovery. This is due to the upcoming launch of the ASI Token? What is certain is that it will be essential to closely observe the price reaction at different key levels to confirm or deny current hypotheses. It is also important to remain vigilant against potential “fake outs” and market squeezes in any scenario. Finally, let us remember that these analyzes are based exclusively on technical criteria and that the price of cryptocurrencies can evolve rapidly due to other more fundamental factors.
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Family business
Family Trading is a community of traders active since 2017 that offers Lives, educational content and contacts with the financial markets, not celuting cryptocurrencies with their friends Elie FT, passionate investor and trader on the cryptocurrency market.
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