Fetch.ai (FET) is at a critical crossroads as it tests a key bearish trendline. While the cryptocurrency has struggled against the trendline, signs of emerging bullish sentiment are fueling optimism for a potential breakout. AsFET balances on this trendline, a strong move above it could open the door for a rally toward the $1.86 mark.
The aim of this analysis is to evaluate FET’s current price action as it hovers near a crucial bearish trendline. By examining key technical indicators and market sentiment, we seek to determine whether FET has the potential to break through resistance and ignite a rally toward the $1.86 level, or if the bears will continue to dominate, keeping the price subdued.
At the time of writing, FET was trading around $1.11, showing a 3.22% increase. FET boasts a market capitalization of over $2.8 billion and a trading volume of $116 million. In the past 24 hours, its market cap and trading volume have increased by 3.39% and 23.95%, respectively.
Analyzing FET’s Current Price Action
On the 4-hour chart, despite trading below the 100-day SMA, FET is showing promising momentum, attempting to move above the trendline. The appearance of multiple bullish candlesticks indicates strong buying interest and positive market sentiment, suggesting that a breakout could be imminent.
In addition, the Relative Strength Index (RSI) in the same timeframe has moved above the 50% mark and is currently at 56%. This rise indicates thatbullish momentum is building, potentially signaling a forthcoming breakout above the bearish trendline.
Also, on the 1-day chart, FET is gaining upward momentum as it targets a breakout above the bearish trendline, aiming to reach the 100-day Simple Moving Average (SMA). This movement suggests a positive market sentiment, with buyers potentially driving the price higher if a breakout occurs.
Finally, on the 1-day chart, the RSI signal has risen to 52% above the 50% threshold after briefly dropping to 47%. Particularly, this rebound suggests positive momentum is gaining strength, which could push the cryptocurrency higher.
FET Next Big Move – Rally Or Retreat?
With recent upward momentum and the RSI indicating optimistic signals, FET could be set for a substantial rally toward the $1.86 resistance level if it successfully breaks through the bearish trendline. A breach of this level might lead to further gains, possibly triggering the price to test the $2.56 resistance and even reach higher resistance zones.
If the trendline remains intact and bearish pressure continues, FET may face a decline toward the previous support level at $0.96. Furthermore, a break below this support could lead to an additional downtrend, potentially causing the price to fall to $0.45 or even lower.
Featured image from Medium, chart from Tradingview.com