FET is one of the biggest losers in the cryptocurrency market today as the price has dropped by 18% in the past 24 hours. This drop has taken the price of FET from a peak of $1.62 yesterday to $1.28 at the time of writing.
Following this development, it looks like the altcoin may continue to fall to lower levels, here's why.
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One of the key indicators that the FET price could fall further is the holding period. Holding period is the period of time that owners hold a cryptocurrency without selling or trading it.
When it increases, it means that owners are not selling, which indicates confidence in the coin’s upside potential. However, when it decreases, it indicates selling pressure, which suggests that owners do not believe in the coin’s short-term potential.
At the time of publication, FET’s holding period has decreased by 83% over the past seven days. Based on the above conditions, this decrease is considered negative for the altcoin. Therefore, the price is likely to drop below $1.30.
FET Coins Holding Period
Due to this situation, the Historical In/Out of the Money (HIOM) indicator shows a decrease in the number of FET holders with unrealized profits.
The HIOM indicator is useful for comparing the percentage of profitable addresses at two different times when prices are in a similar range. The change in the percentage of profitable addresses helps determine whether momentum favors buyers or sellers.
On November 11, HIOM showed that around 74% of FET holders were making profits. However, at the time of writing, this percentage has dropped to around 53%. This drop suggests that market participants may not be encouraged to buy the altcoin; therefore, the price may struggle to rise.
FET Price Prediction: Selling Pressure Increases
Looking at the daily chart shows that the decline in the price of FET has led to it falling below the major exponential moving averages (EMAs). As shown below, both the 20-day EMA (blue) and the 50-day EMA (yellow) are located around the same area.
EMA can indicate support and resistance areas. A rising EMA often supports an upward price trend, while a falling EMA tends to act as resistance. Since the indicators have fallen, and the FET price is below them, there is no strong support for the cryptocurrency.
If the situation continues like this, the price of FET may drop to $1.24. If the selling pressure increases, it may drop to as low as $1.13. However, if bulls start accumulating the coin in large volumes, things may change, and the cryptocurrency may rise to $1.74.
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