Fetch.AI (FET) Price Eyes Potential 173% Rally Amid Strong Momentum.
NOIDA (CoinChapter.com)—The price of Fetch.AI (FET) has recently gained momentum, with FET price rallying since Sept. 9. However, the rally seems to be fizzling out as bears seemingly defend the resistance trendline of a bullish technical setup that the token has formed.
Fetch.ai’s involvement in the Artificial Superintelligence Alliance (ASI), a collaboration between Fetch.ai, SingularityNET, and Ocean Protocol, has helped the FET token price action. The alliance aims to advance decentralized Artificial General Intelligence (AGI) and Artificial Superintelligence (ASI).
FET Price Forms Bullish Reversal Pattern
The FET USD pair has formed a bullish technical setup called the ‘Bump and Run Reversal (BARR) Bottom pattern.‘
The Bump and Run Reversal (BARR) pattern signals a potential bullish reversal after a prolonged asset price downtrend. Discovered by Thomas Bulkowski, the pattern unfolds in three distinct phases: the lead-in, bump, and run.
During the lead-in phase, prices experience a steady and controlled decline without excessive speculation. This allows traders to identify and draw a sloping trendline as a key support level.
The FETUSD pair formed a bullish setup with a 173% upside target. Source: Tradingview
As the market enters the bump phase, speculative activity intensifies, causing a sharp price drop. Volume spikes or news often trigger this decline, temporarily pushing prices lower.
Finally, the run phase begins once the price reaches its bottom and reverses, climbing back up and breaking above the initial trendline formed during the lead-in phase. The breakout signals the start of a recovery or rally.
Traders determine the price target for this pattern by measuring the vertical distance from the trendline to the lowest point of the bump, known as the bump height, and projecting it upwards from the breakout point.
Accurately timing entry into the market is critical, and traders typically enter during the run phase once the price breaks through the trendline. Volume confirmation is essential to validate the move and ensure that the reversal has significant market participation.
According to the rules of technical analysis, the FET USD pair could rise to $4.69, a 173% spike from current levels.
Bull Run Faces Overbought RSI
The recent bull run brought FET price into the overbought region. The Relative Strength Index (RSI) for Fetch.AI (FET) is nearing overbought territory with a score of 69.84. Overbought RSI levels could often signal potential short-term exhaustion.
While this may trigger a pullback or consolidation, it’s important to note that in strong bullish trends, assets can remain overbought for extended periods. Traders should watch for weakening momentum or divergence before anticipating a price reversal.
FETUSD daily price chart with RSI and Ichimoku cloud.
Moreover, the Ichimoku Cloud indicator on the FET USD pair suggests strong bullish momentum. FET price is currently trading above the cloud, indicating potential upward movement. The Tenkan-sen (red) and Kijun-sen (blue) lines are positioned below the price, reinforcing this positive trend.
Additionally, the price is nearing the 0.618 Fibonacci retracement level around $1.94, which, if broken, could trigger further gains. Flipping the immediate resistance could help the Fetch.ai coin price rise to the resistance near $2.4.
However, a short-term pullback may occur before the next leg up with the RSI approaching overbought territory. As such, FET price could drop to the support near $1.44. If the immediate support fails, the FET USD pair could end up testing the support near $1.2 before recovering.
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