FET is currently consolidating around $1.33, with the market closely watching whether it can successfully break through the key resistance level of $1.38. Recently, FET's on-chain activity has significantly increased, while several technical indicators and liquidation data reveal a potential bullish trend, bringing positive signals to the market.
As a leader in the field of artificial intelligence, FET is attracting widespread attention as it approaches a critical trend line breakout point, which is expected to trigger a significant rebound of 20% to 30%. Although at the time of writing, FET's trading price is $1.33, having experienced a slight drop of 1.19% in the past 24 hours, the vigorous development of on-chain activity and strong technical indicators indicate that bullish momentum may soon take the lead.
So, can FET live up to expectations and usher in a significant rebound? This will be the focus of market attention in the coming days. Investors will closely monitor FET's movements, hoping it can break through key resistance levels and open an upward channel.
Is a breakout at $1.38 imminent?
FET's price is currently trading within a descending channel, with $1.38 being the key resistance level for a bullish breakout.
Exceeding this threshold could drive the price up to $1.60, equivalent to the expected 20-30% increase.
Historical price patterns indicate that FET has successfully broken similar patterns in the past. However, sustained volume and bullish momentum are crucial to confirming this situation and attracting more investor interest.
On-chain activity shows increasing participation
The Fetch.AI network has recently shown extremely high activity levels, with data indicating that the number of new addresses surged by 47.36% in the past week, while the number of active addresses also saw a growth of 12.46%. These significant figures not only highlight the growing interest in the FET token, but also reflect that the Fetch.AI ecosystem is gradually being more widely accepted and adopted.
As network activity continues to rise, investor confidence in Fetch.AI is gradually increasing as well. This boost in confidence often signals that the price of the FET token could experience significant volatility. For investors, the current thriving landscape of the Fetch.AI network undoubtedly provides ample investment opportunities and potential for value growth.
How foreign exchange reserves convey market sentiment
Foreign exchange reserves have slightly increased by 0.12% to 471.4 million FET, indicating that traders are cautious about the currency held by exchanges.
However, the shift in reserve levels may indicate an accumulation of reserves, leading to upward price pressure.
Thus, closely monitoring this indicator is crucial for identifying sentiment changes and potential bullish signals.
FET's technical indicators suggest that momentum may be emerging.
The technical indicators for FET present a mixed scenario. The moving average (MA) crossover suggests a potential upward trajectory, increasing bullish hopes.
However, the average directional index (ADX) is at 15.76, indicating weak trend strength, requiring price movement and volume to confirm this. This leaves traders eagerly awaiting stronger signals.
Liquidations may fuel bullish momentum
Liquidation data reveals the current market's short-term sentiment trend: the amount of short liquidations is $13,000, while the amount of long liquidations is only $1,560. This stark contrast clearly shows that the shorts are dominating in the short term. This may indicate that bearish sentiment is temporarily overpowering bullish sentiment among market participants.
However, it is worth noting that if FET can successfully break through the key price level of $1.38, the market dynamics may undergo significant changes. This breakout is expected to trigger a wave of short position liquidations, as many short traders may choose to cut losses or take profits at this point, thus unleashing a large amount of buying power. This short liquidation wave is likely to become a catalyst for a substantial increase in FET prices.
As prices rise, market sentiment may also shift from bearish to bullish. This change in sentiment will further strengthen buying power, creating significant upward momentum for FET prices. Therefore, despite the current dominance of shorts, if FET successfully breaks through key price levels, the market may quickly enter a bullish phase.
If the resistance level of $1.38 is broken, Fetch.AI will have all conditions for a 20-30% increase.
Increased network activity, favorable technical signals, and potential liquidations indicate strong bullish momentum. Therefore, FET seems poised to achieve its rebound expectations in the near future.