FET Gains 25%, But Price Divergence From DAA Signals Sell
Average Directional Index Shows Weakening Bearish Trend; Critical Moments for FET to Remain Strong
FET Could Drop to $1.19: Bearish Formation Confirmed, Target $1.95 or $2.00 If $1.71 Support Level Is Strong

The Artificial Superintelligence Alliance (FET) is up 25% this week, but the rally seen on the price chart also warns of a major decline in the future. While the increase is encouraging, underlying bearish signals are forcing investors to be cautious.

FET Investors Face Downward Warning
The increase in the price of FET is incompatible with the decreasing activity of the network, leading to price-DAA divergence. This can often lead to major corrections. Similar scenarios in the past have caused price declines and shaken investor optimism.

The current rise of FET seems out of sync with the underlying growth of the network, which suggests a major correction is imminent. Such divergences indicate that the market needs to recalibrate when prices outpace organic network growth.

ADX Offers Mixed Outlook for FET
The Average Directional Index (ADX), which examines FET’s macro momentum, suggests that the current downtrend is weakening and is likely over. A neutral ADX indicates that FET may be entering a more stable period. However, if the ADX starts to rise again, it could be a sign of a strong uptrend and FET could be heading towards the next resistance levels.

Bearish Patterns and Potential Losses
The probability of a bearish signal such as a head and shoulders formation on the FET price chart is increasing. A drop below the $1.19 support could confirm this pattern and trigger a significant decline.

However, the possibility of FET staying above $1.40 contradicts the bearish signals. While it seems to be struggling to break above $1.71, any losses below this level could be a sign of a bigger correction. The $1.71 support level could prevent FET from experiencing further losses.

The Rising Scenario for FET
If FET manages to turn the $1.71 support level, the price could rally to $1.95 or $2.00. Such a move would invalidate the bearish scenario and strengthen FET’s uptrend. This could paint a more positive picture for the altcoin’s future.