Fetch.ai (FET) is currently undergoing price consolidation as it nears the launch of the ASI token. This week, around 748 million FET, worth $1.06 billion, entered profitable territory. This is the first instance in a month where 70% of the total FET supply is in profit, which could lead to potential selling.
Despite showing bullish momentum, the recent increase in profits might encourage investors to take some profits, which could result in the price pulling back to approximately $1.04.
Fetch.ai (FET) Faces Potential Profit-Taking After Recent Surge
Fetch.ai (FET) has experienced a significant rise in profits recently. According to the Global In/Out of the Money (GIOM) indicator, approximately 748 million FET, valued at over $1.06 billion, turned profitable this week. This supply, acquired between $1.22 and $1.37, constitutes about 27% of the total circulating supply of FET.
The increase in profitable FET is partly due to the recent migration of OCEAN and AGIX, which has led to a higher amount of FET-bearing profits. The ongoing merger of Fetch.ai, Ocean Protocol, and SingularityNET, resulting in the creation of the Artificial Superintelligence Alliance and its token ASI, has further influenced these dynamics. With the first phase of migration completed, the second phase, including the ASI launch, is expected by the end of July.
However, this surge in profits raises the risk of profit-taking. This week, about 70% of the total FET supply became profitable, up from 42% previously. Typically, selling tends to occur around the 80% mark of profitable supply, but given that this is the first significant profit for these investors in a month, selling might commence earlier. This potential profit-taking could put downward pressure on the FET price.
Fetch.ai (FET) Price Dynamics: Support and Resistance Levels
Currently, Fetch.ai (FET) is trading at $1.44 and is working to establish $1.40 as a support level. However, if profit-taking becomes significant, the altcoin may struggle to maintain this support. A strong sell-off could push the FET price down to $1.20 or even $1.04.
With $1.04 and $1.71 marking the current consolidation range for FET, the altcoin might remain rangebound. If the $1.40 support holds, FET could rebound towards the $1.71 resistance. Successfully breaking through this resistance would challenge the bearish outlook and potentially lead to a price rally.
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