The Artificial Intelligence Super Alliance [FET] recently broke a 266-day downtrend, signaling a potential reversal. The token's price has increased by 8.54% over the past week, with a market cap of $3.36 billion, but FET faces significant resistance at the $1.60 level.

Failure to break this threshold could lead to a double bottom formation, especially if Bitcoin [BTC] pulls back to $80,000.

Lower timeframe analysis.

After experiencing a downtrend for 266 days, FET has finally broken out, crossing the descending trendline resistance with significant volume, indicating strong buyer interest.

As of the time of writing, the trading price is $1.377, and the breakout marks a significant step forward, but the price currently faces strong resistance in the $1.60-$1.65 range.

Achieving higher highs and closing above this level is crucial for confirming a sustained upward trend and opening the path towards the $2.20 to $2.50 range in the coming months.

However, there remains a possibility of a double bottom forming before FET breaks this resistance level, which may be triggered by a market pullback, potentially shaking leveraged positions.

Failure to break above $1.60 could lead to a pullback to $1.20 or even $0.72, where there is strong support.

The next few weeks will be crucial in determining whether FET maintains its bullish momentum or consolidates at lower levels.

From the 4-hour chart, the price is pulling back to the initial accumulation range around $1.36, where buyers had previously accumulated and pushed the price higher.

A pullback to this level will provide traders with an opportunity to align with smart money and potentially ride the waves again.

If the price successfully rebounds from $1.3 and shifts momentum, the next key resistance level to watch is $1.645.

Indicators like MACD show that bullish momentum is weakening and a bearish cross may occur, while the momentum oscillator (AO) reflects that positive momentum is declining, signaling a potential short-term pullback.

FET network growth is strong.

Fetch.ai's activity has significantly increased, with daily active addresses (in green) exceeding 2,400 during recent peaks, while new addresses (in blue) also surpassed 1,200, indicating continuously rising user engagement.

Zero balance addresses (in orange) also continue to rise, indicating that a large number of new users are preparing to join the network.

In the past seven days, new addresses have increased by 3.35%, and active addresses have increased by 1.02%, further highlighting the ongoing rise in adoption.

However, zero balance addresses decreased by 2.25%, reflecting that some accounts are transitioning to active use.

This activity is closely related to price movements, as the recent peak of $1.70 coincides with the surge in new addresses and active addresses.

The continued rise in active addresses highlights ongoing adoption, while the decline in zero balance addresses indicates a shift from speculative interest to actual utility and trading.

On a positive note, a large number of long liquidations have begun to accumulate above $1.50, peaking around $1.60, indicating an increased risk of over-leveraged long positions in the event of a pullback.

Conversely, short liquidations are concentrated below $1.40, with liquidation intensity increasing as the price approaches $1.30.

This suggests that a price drop below $1.40 could trigger mass liquidations of short positions.

The map shows high levels of leveraged activity, which, as the price approaches the liquidation dense area, may lead to a spike in volatility.

In short, FET has ended a long-term downtrend and is poised to break above $1.60, while the liquidation cluster between $1.50 and $1.60 indicates volatility driven by leverage.