FET Examination: Assessing the Likelihood of a Price Rebound After a 14% Decline
The Artificial Superintelligence Alliance [FET] has encountered a significant drop in value, signaling a period of control by bearish investors. Despite these challenges, there is the potential for a reversal in fortunes under certain conditions. Let’s delve into the current state of affairs surrounding FET.
Potential for Bullish Reversal
Recent data from CoinMarketCap highlights a substantial 14% decline in FET’s price over the past week, with further downward pressure persisting in the last 24 hours, resulting in an additional 8% drop. Currently, FET is trading at $1.11, boasting a market capitalization exceeding $2.7 billion, securing its position as the 28th largest cryptocurrency by market cap.
Following this price correction, the token’s overall sentiment has shifted towards the bearish end. However, its social visibility remains robust, emphasizing FET’s enduring appeal within the cryptocurrency community.
Encouragingly, there are signs that this downward trend could be short-lived, with FET currently testing a pivotal support level, as highlighted by insights from World Of Charts, a respected crypto analyst. Should this support hold, investors could witness FET embarking on a trajectory towards $1.5 once more.
Future Prospects for FET
Amidst the potential for a bullish reversal, CryptoCrypto delved into FET’s on-chain metrics to gauge the likelihood of a price uptrend. Analysis of Santiment’s data revealed a notable surge in buying pressure surrounding the token in recent days.
This uptick in demand was underscored by the increase in FET’s supply off exchanges alongside a decline in on-exchange supply. Moreover, heightened exchange outflows point towards increased investor interest in acquiring FET.
While retail investors displayed growing confidence in FET, large holders showed a degree of caution, with a decline in the holdings of top addresses noted on the 3rd of September. To further assess this dynamic, we referenced Hyblock Capital’s data.
Our evaluation of FET’s whale vs. retail delta indicated an equilibrium with a neutral value at present. This metric, ranging from -100 to 100, signifies a balance where both whales and retail investors are evenly positioned.
Turning to the token’s daily chart, our analysis identified potential concerns regarding FET’s ability to successfully test its support level. The MACD indicator hinted at a possible bearish crossover, while the Relative Strength Index (RSI) signaled a downward trend. These indicators collectively suggest a scenario where FET may struggle to hold its support, potentially leading to prolonged price depreciation.