The recent surge in the price of Artificial Superintelligence Alliance (FET) has caught the attention of many investors as the token rose by nearly 30% within a span of three days, going from $1.05 on the 8th of September to a peak of $1.3 on the 10th of September.
This significant upsurge enabled the AI token to break through important long-term trendline resistance levels, prompting discussions about the potential continuation of this rally.
Forecast for FET Price
Previous instances of FET’s price recoveries have encountered resistance around the $1.5 mark. While the possibility of another rejection cannot be disregarded, indicators on the daily price chart suggest a likelihood of the uptrend extension.
The current demand for FET appears robust, as indicated by the above-average reading on the Relative Strength Index (RSI), which has yet to reach overbought conditions, indicating room for further growth in the rally.
Given the prevailing bullish market conditions, a sustained surge could potentially lead to a 23% or 55% increase, should the price reach $1.59 or the supply zone at $2, respectively.
Nevertheless, caution is advised as the stochastic RSI is approaching overbought levels, offering mixed signals and cautionary signs for short-term traders. A drop below $1.3 could nullify the bullish outlook, potentially resulting in a descent towards the support zone and daily bullish order block between $1.05 and $1.12.
Assessment of FET’s Value and Market Sentiment
Despite the recent 30% surge, investors who acquired FET in the last three to six months are still experiencing losses. The 90-day and 180-day Market Value Realized Value (MVRV) metrics indicate unrealized losses of 72% and 79% respectively, highlighting the token’s current undervaluation.
For those considering re-entry into the market, monitoring whale activities is crucial. Notably, the recent price surge was primarily fueled by substantial transactions, as evidenced by data from IntoTheBlock.
On the 10th of September alone, FET experienced a trading volume of $56.14 million, contributing to an 11% upsurge.
However, derivative markets witnessed an increase in bearish positions on the token, with 52% of traders opting for short positions, indicating a prevailing sentiment of anticipating a pullback from the recent bullish run.
In summary, while FET holds promising long-term potential, a temporary correction may be on the horizon before resuming its recovery. A retest of trendline resistance or the identified support zone could act as buffers against a retracement, potentially paving the way for another upward movement.
Disclaimer: The views expressed in this analysis are personal opinions and do not constitute financial, investment, trading, or any other form of advice.