Fetch.AI (FET) has continued to show strength in recent trading sessions. It broke out of an inverse head and shoulders pattern and gained upward momentum. FET price is currently at $1.87, which surged 3.59% in the last 24 hours, bringing it closer to a key resistance level at $2.00. The primary question now is whether the token can maintain this bullish momentum and break through this critical psychological barrier.
RSI Indicates Possible Short-Term Correction
The Relative Strength Index (RSI), which currently sits at 70.83, suggests that FET is in overbought territory.
Fetch.AI (FET) coin price chart shows RSI in overbought territory. Source: TradingView
An RSI value over 70 typically indicates that an asset has been bought too aggressively in a short period, and a pullback may be imminent. The overbought condition also raises the likelihood of a short-term correction before any further upward movement can be sustained.Â
On-Chain Data Points to Strong Network Activity
Fetch.AIâs network has continued to expand, showing growth in key on-chain metrics. The net network growth has increased by 1.19%, showing a steady rise in user participation and adoption.
FETâs on-chain signals show bullish indicators. Source: IntoTheBlock
This kind of growth is a strong signal for long-term viability, suggesting that more users are engaging with the network and interacting with Fetch.AIâs ecosystem. Another critical metric is the percentage of addresses âin the money,â which currently stands at 7.24%. This means a significant portion of investors are in profit at current prices, a bullish sign that they may be more likely to hold their positions rather than sell off in fear of losses.
However, the concentration of large holders or whales has slightly decreased by -0.38%, which could indicate some degree of profit-taking. While this isnât a significant drop, it shows that some larger investors might be trimming their positions after the recent price rise.
FETâs Exchange Reserves Show Mixed Trends
Fetch.AIâs exchange reserves provide further insight into the market dynamics. In July 2024, exchange reserves rose by 125%, surging from 200 million tokens to 450 million tokens.
FETâs exchange reserves started declining in September. Source: CryptoQuant
This sharp increase suggested rising selling pressure, as more tokens became available on exchanges for trading. However, since July, these reserves have gradually decreased, suggesting that investors may have withdrawn tokens for long-term holding or staking. The overall decline in exchange reserves since September reflects a reduction in sell-side liquidity, which could contribute to upward price pressure.
Can Fetch.AI Break $2.00?
The recent inverse head and shoulders breakout is a powerful indicator of potential bullish continuation.
Source: TradingView
The pattern, which formed over several weeks, broke above its neckline at $1.45, confirming the shift from a bearish to a bullish trend. Given the measured move from the head of the pattern to the neckline, the next price target for FET is projected to be between $2.10 and $2.20.
The immediate resistance level of $2.00 is a psychological barrier that will be critical for FET to overcome. If Fetch.AI can break through this level with strong volume and continued market interest, it is likely that the token will make its way toward the next target around $2.20. However, failure to break $2.00 could result in a temporary pullback, especially given the overbought conditions indicated by the RSI.
Related Post: Can Fetch AI (FET) Coin Ride Nvidiaâs Q2 Earnings Wave to a $1.5 Breakout?
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