Nov 25, 2024
6thTrade
Artificial Superintelligence Alliance (FET) has maintained a steady bullish trend across multiple timeframes, with gains ranging from 12% to 16% on monthly, weekly, and daily charts. While recent developments hint at the potential for a further rally, the continuation of this upward momentum depends on overcoming critical challenges.
Symmetrical Triangle Formation Signals Potential Rally
Analyst Crypto Leo highlights that FET is currently trading within a symmetrical triangle pattern on the weekly chart—a structure often associated with impending breakouts.
This pattern is defined by converging support and resistance levels that create a narrowing price range, typically preceding a significant move.
However, FET’s rally may face delays due to emerging resistance levels within this pattern. These levels represent substantial sell pressure that could trigger a pullback if not breached.
A successful breakout above the resistance zone could drive FET’s price to at least $3.50, as projected by the chart.
Sell-Off Activity Threatens Momentum
Data from Coinglass indicates a notable sell-off among FET holders in the last 24 hours. During this period, $4.34 million worth of FET was moved to exchanges, signaling increased liquidation activity.
This wave of selling suggests bearish sentiment may be gaining traction, which could further dampen FET’s upward trajectory if more traders follow suit.
Additionally, the market has witnessed significant liquidation of long positions, with $820,490 forcefully closed as price movements diverged from expectations. Combined, these metrics point to heightened selling pressure that could delay FET’s breakout.
Bullish Open Interest Keeps Optimism Alive
Despite the sell-off, FET’s Open Interest—tracking the number of active derivative contracts—has risen by 10.20% to $154.86 million.
This increase reflects continued market interest and hints at a bullish undertone. However, for this optimism to translate into price action, other metrics must align in support of upward momentum.
Conclusion: Can FET Overcome the Resistance?
FET’s symmetrical triangle formation indicates potential for a breakout, but significant hurdles remain. Resistance within the pattern, increased sell-offs, and liquidations of long positions could delay the rally.
That said, the rise in Open Interest suggests underlying bullish sentiment. If FET can overcome these obstacles, a breakout to $3.50 or higher remains within reach. For now, traders should monitor key resistance levels and market activity closely to anticipate the next move.
