FET: Impending 20% Decrease on the Horizon – What Comes Next?
With the prevailing negative sentiment in the market, the Artificial Superintelligence Alliance Price Prediction (FET) is positioned for a substantial drop in value after failing to maintain a critical support level.
Similarly, leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have been encountering difficulties, witnessing significant price dips in the last 24 hours.
Present Price Movement
Currently, FET is hovering around the $1.35 mark, following a decrease of more than 4.7% in the past day. Concurrently, its trading volume declined by 4.9%, indicating reduced involvement from traders and investors.
FET recently breached essential trendline support, a robust consolidation area, and the 200 Exponential Moving Average (EMA) within a daily timeframe.
The closure of a daily candle below the consolidation area has confirmed this as a successful breakdown.
Given its historical price trends, there is a high likelihood that FET could plummet by 20% to reach $1.03 in the upcoming days.
Despite the bearish projection, the Relative Strength Index (RSI) is in an oversold region, hinting at a potential price recovery.
Yet, such a reversal seems improbable currently due to the dominant negative sentiment in the market.
Negative On-Chain Metrics
The altcoin’s pessimistic outlook is reinforced by on-chain indicators.
Coinglass, an on-chain analytics firm, reported FET’s Long/Short Ratio as 0.90 at present, indicating prevalent bearish sentiment among traders.
Moreover, the Futures Open Interest for FET decreased by 6.7% in the past day, steadily declining and reflecting the prevailing bearish sentiment.
As of now, 53.2% of prominent traders have taken short positions, while 46.8% have opted for long positions.
Notably, Coinglass data highlights major liquidation thresholds at $1.30 and $1.38, indicating traders’ over-leveraging at these levels.
In case FET’s price reaches $1.30 without any significant market changes, approximately $807,000 worth of long positions will be liquidated.
Conversely, if sentiment switches, pushing the price to $1.38, nearly $2.17 million worth of short positions will face liquidation.
The data emphasizes that short sellers have been actively engaging in significant short bets over the last 24 hours.
By amalgamating technical analysis with on-chain metrics like open interest and the Long/Short Ratio, it is evident that bears currently hold sway over the asset, potentially steering a substantial price downturn.