Dec 1, 2024

6thTrade

The price of Artificial Superintelligence Alliance (FET) has seen a significant 12% rise in the last 24 hours, outperforming many cryptocurrencies. This sharp price increase has pushed the token above a critical resistance level, sparking speculation that FET could soon hit $3.

FET to Reach $3?

At the time of writing, FET was trading at $1.83, showing an impressive 12% gain over the past day. This surge has put over 97,000 FET addresses in profit, representing more than 78% of the total addresses holding the token.

The price increase has also led to a notable reduction in FET’s realized losses. A decline in realized losses indicates that coins previously moved at higher prices are now being sold at lower prices, suggesting that the token's recent rally has eased selling pressure.

Breakout and Bullish Momentum

FET’s recent price pump allowed the token to break above a significant resistance level. According to ZAYK Charts, this breakout from a descending trendline suggests the potential for further price gains. If the momentum continues, FET could soon approach its March 2024 high of $3.

Roadblocks Ahead?

Despite the bullish outlook, AMBCrypto examined FET’s on-chain data to assess potential obstacles. Santiment’s analysis showed that buying pressure remained strong, as evidenced by an increase in FET’s supply outside of exchanges and a decrease in supply on exchanges. The surge in exchange outflows further confirmed that investors were actively buying.

However, the data also revealed a decline in the token's supply held by top addresses, suggesting that some large investors may have taken profits. This selling activity from whales could lead to short-term price corrections.

Positive Technical Indicators

Despite these potential challenges, technical indicators still favor bullish momentum. The MACD indicator showed a clear advantage for buyers, while the Chaikin Money Flow (CMF) also increased, signaling rising buying pressure and net accumulation. These indicators support the potential for continued price growth toward the $3 target.

Potential Price Correction

It’s important to note that FET’s price has reached the upper limit of the Bollinger Bands, which often signals the possibility of a price correction. While the outlook remains bullish in the near term, traders should be prepared for short-term retracements before the token can reach new highs.

Conclusion

FET’s recent breakout and rising buying pressure suggest a strong potential for further gains, with $3 as a likely target. However, with whale activity potentially triggering profit-taking and the upper limits of the Bollinger Bands signaling possible corrections, traders should stay cautious and monitor key technical levels for signs of retracements.