Fetch.AI [FET] has experienced a notable 22% surge following a breakout from its long-term downtrend, edging closer to the critical $1.77 resistance level. FET’s positive momentum remains robust at $1.61, showing a 1.48% increase in the past 24 hours at the time of writing.
The pressing question now is whether this upward trend will persist and propel the token past the significant resistance level.
Analyzing Price Action: Can FET Surpass the $1.77 Hurdle?
The price action for FET suggests that the token has reached the upper Bollinger Band at $1.637, typically indicating an overbought situation. The RSI currently sits at 62.22, indicating potential for further growth while hovering near the overbought region.
With solid buying pressure observed, traders are closely monitoring the $1.77 resistance level. A successful break above this point could indicate a move towards $2.00, while a failure to breach might lead FET back to the $1.30 support level.
Influx of Exchange Reserves – Is Selling Pressure Escalating?
Over the last 24 hours, FET’s exchange reserves have increased by 0.24% to 497.0971 million tokens, hinting at a potential rise in selling pressure. When tokens are held in exchanges, it often signifies traders gearing up to sell, impacting price movements.
This development could trigger a short-term price adjustment if it persists, rendering it a crucial factor to monitor.
Assessing On-Chain Signals: Is Bullish Momentum Still Strong?
On-chain data for FET reveals robust bullish signals. Net network growth has risen by 2.54%, indicating expanding user engagement, while the “In the Money” metric has increased by 2.73%, suggesting more holders are profiting.
Both concentration and significant transactions have experienced slight upticks, indicating ongoing investor confidence in FET’s potential upward path.
Upward Trend in FET Open Interest – What Does It Indicate?
The open interest in FET futures has surged by 2.33%, reaching $105.82 million currently. This uptick reflects heightened market involvement and anticipation of a substantial price movement.
Together with encouraging on-chain data, the increasing open interest implies that FET could sustain its optimistic momentum. Nevertheless, traders need to exercise caution, as excessive leverage might lead to a sharp market correction.
The bullish drive of FET hinges on surpassing the $1.77 resistance threshold. While on-chain data supports further advancements, the upsurge in exchange reserves cautions of potential selling pressure that could impede the rally.