The Artificial Superintelligence Alliance [FET] has recently revealed its intention to introduce a Earn-and-Burn strategy by December, involving the combustion of up to 100 million tokens to decrease the supply and potentially elevate the price.
Following this announcement, FET experienced a 9.19% increase, trading at $1.62 currently. The pressing query is: can this upward trend persist, and what do the technical indicators imply for FET’s trajectory?
Is FET emerging from Its bearish trend?
FET has recently broken out of a descending pattern, a shift that commonly signals a shift in market sentiment. This breakout is positive, hinting that the token might be transitioning into a more optimistic phase.
Currently, FET is testing a significant hurdle at $1.67. If the token manages to surpass this level, targeting $2.56 becomes a feasible goal. With the RSI at 60.45, FET has not yet entered the overbought zone, allowing room for further price advancements.
What does the MVRV ratio reveal about investor sentiment?
The MVRV ratio for FET stands at -86.12%, indicating that a large number of holders are currently facing losses. While this may raise concerns, it could also signal an undervalued asset, potentially paving the way for a price recovery.
Therefore, the current negative MVRV ratio could present an opportunity for long-term investors seeking a price resurgence.
How do on-chain indicators back the positive outlook?
The on-chain metrics offer an overall encouraging outlook. Net Network Growth has slightly declined by 1.97%, which is not a significant worry given the broader market sentiment.
Of more significance, other crucial indicators are notably bullish: Into the Money is at 13.36%, indicating that a large segment of FET holders are in profit.
Moreover, substantial Transactions have surged by 7.44%, demonstrating a growing institutional interest. Furthermore, Concentration stands at 0.10%, showing that investors are amassing tokens. Collectively, these factors indicate robust backing for FET’s price momentum.
Is the market sentiment favoring FET?
The market sentiment is increasingly upbeat. Open interest has climbed by 10.38%, reaching $156.26M, a clear sign that traders anticipate further price rises. This escalation in open interest suggests that the market foresees additional upside for FET, especially with the upcoming token burn event.
Given the strong technical breakout, optimistic market sentiment, and bullish on-chain signals, FET is well set for ongoing price appreciation.
The recent surge in open interest mirrors amplified investor confidence, and if FET breaches the $1.67 resistance level, a move towards $2.56 seems highly likely. Therefore, the uptrend is expected to persist, yet investors ought to monitor key resistance levels for confirmation.