Artificial Intelligence Alliance Token (FET) Pays No Heed To Bullish Cues.
NOIDA (CoinChapter.com)— The Artificial Superintelligence Alliance (FET) coin has dropped 11.1% since Sept. 15. The drop followed ecosystem developments, including an updated wallet and a partnership with SingularityNET.
Despite the positive indicators suggesting growing investor confidence, market data shows potential risks as funding rates turned negative, signaling caution amidst the rally.
Bullish Momentum vs. Bearish Risks in The Artificial Superintelligence Alliance
The Artificial Superintelligence Alliance has been busy expanding its ecosystem. The token’s integration with SingularityNET on the Cardano blockchain was a major update, enhancing its cross-chain capabilities and liquidity.
The development and updates to the Ethereum-Cardano bridge should have made FET more attractive for users looking for flexibility and better asset usability across different blockchains. However, the formerly Fetch.AI token seems to have failed to respond to the bullish cues.
The Sept. 10 wallet update also introduced features such as governance participation and increased security. The team claimed that the updates indicate their commitment to making FET more user-friendly and decentralized.
Despite this positive outlook, data from CoinGlass raises cautionary signals. The funding rate recently dipped into negative territory, suggesting that short traders are gaining dominance.
FET OI-weighted funding rate. Source: Coinglass
A negative funding rate often indicates that traders expect the price to drop as shorts pay longs to maintain positions. This, combined with a decline in open interest, points to a potential weakening of the current bullish momentum.
As a result, investors should approach the token’s recent rise with caution, considering broader market volatility and potential profit-taking in the near term. Moreover, the token has risks from bearish technicals.
Bearish Setup Adds To Risks
The FET USD pair has formed a bearish technical setup called the ‘descending triangle.‘
The FETUSD pair formed a bearish setup with an 86% downside target. Source: Tradingview
Analysts recognize the descending triangle as a bearish continuation pattern. The configuration features a declining upper trendline that compresses price action into lower highs, while a flat lower trendline serves as consistent but weakening support.
The pattern signals intensifying selling pressure, resulting in progressively weaker rallies that struggle to breach resistance.
In this setup, traders estimate the potential downside by measuring the maximum height of the triangle. Pepe coin’s price recently broke out of this descending triangle, only for bulls to push it back within the pattern.
However, if the Artificial Superintelligence Alliance coin price confirms the bearish setup, the FET USD pair could plummet by over 86%, reaching a target near $0.183
The post Artificial Superintelligence Alliance Token (FET) Pays No Heed To Bullish Cues appeared first on CoinChapter.
