Following a breakout from a bullish pattern, Artificial Superintelligence Alliance [FET] has experienced a decline in its chart performance over the past week.
Nevertheless, there’s no need for investors to be alarmed, as the token could potentially be retesting a critical support level. Recent analysis suggests that a significant price rally may be on the horizon for FET.
Anticipated Move for FET
World Of Charts, a well-known cryptocurrency analyst, recently pointed out a breakout on FET’s charts on X (previously known as Twitter).
Specifically, FET has been following a widening wedge pattern since March. The token successfully broke out in late September, resulting in some price gains. However, the token later entered a bearish phase, causing its price to drop over the last 7 days.
Nonetheless, investors should remain calm, as FET might be testing the upper support level of the widening wedge pattern.
A tweet by World Of Charts suggested that if the test is successful, a potential rally of over 100% could be on the horizon for investors. Some even argue that the altcoin’s bullish trend may have already started.
Consider this – According to CoinMarketCap, FET’s price surged by more than 7% in the last 24 hours, with the token currently trading at $1.46.
Potential for a 100% Surge?
CryptoCrypto then examined FET’s on-chain metrics to assess the likelihood of a 100% surge in price.
Based on our analysis of Santiment’s data, following a sharp increase, the token’s weighted sentiment dropped. A decrease in this metric suggests a rise in bearish sentiment towards the token.
Furthermore, the token’s supply on exchanges increased, indicating increased selling activity. Elevated selling pressure typically raises the possibility of a price correction.
However, there are positive signs as well. For instance, the token’s MVRV ratio saw an uptick, signaling a bullish trend.
Finally, CryptoCrypto analyzed the token’s daily chart to determine the market indicators’ stance on a potential 100% bullish rally in the short term.
Fortunately, most market indicators appear bullish for the token. For example, based on the Bollinger Bands, the token is testing resistance near its 20-day Simple Moving Average (SMA).
Other indicators also hint at a likely breakout. For instance, the MACD suggests a potential bullish crossover, while the Relative Strength Index (RSI) shows positive upward momentum.
If these indicators hold, FET could be primed for a significant rally, providing investors with profit opportunities in the days or weeks ahead.