The Artificial Superintelligence Alliance [FET] has been maintaining a consistent uptrend seen across various timeframes, ranging from monthly to daily charts, resulting in gains between 12% and 16%.
Recent developments suggest that FET is gearing up for another surge, but its upward trajectory depends on meeting specific criteria.
FET Confronts a Significant Challenge as the Rally Continues
As noted by analyst Crypto Leo, FET was trading within a symmetrical triangle pattern on the weekly chart, a pattern often observed before a price rally.
This pattern is marked by price action moving between converging levels of support and resistance, typically preceding a breakout.
Nevertheless, the ongoing rally might encounter a pause due to emerging resistance levels within the pattern, which are expected to exert notable selling pressure and potentially trigger a pullback in price.
If the resistance is overcome, FET could likely surge towards at least $3.50, as indicated by the chart.
However, resistance is not the sole hurdle in FET’s potential rally. Various key indicators point to a continuing sell-off, which could impede the asset’s upward momentum even further.
FET Confronts a Major Selling Pressure
Data from Coinglass highlighted a notable selling pressure among FET holders within the last 24 hours, with traders transferring their holdings to exchanges for liquidation.
During this period, approximately $4.34 million worth of FET has been moved to exchanges. Should the bearish sentiment persist and more traders follow suit, the asset may witness a decline from its current levels.
Furthermore, there has been an influx of liquidations targeting long positions in the market. Coinglass reported that about $820.49 thousand worth of long positions were forcibly closed as market movements deviated from traders’ expectations.
With these factors working against long traders, the anticipated rally in FET is likely to face delays.
Bullish Sentiment Persists in Open Interest
Open Interest, which monitors the number of outstanding derivative contracts on an asset—in this instance, FET—offers insights into the asset’s future direction.
Recently, Open Interest surged by 10.20%, reaching $154.86 million.
This uptick indicates that the market maintains a positive bias and may experience upward movement, provided other indicators align with this optimistic stance.
Nonetheless, until these conditions materialize, FET is unlikely to break out of the symmetrical triangle pattern and achieve new highs.