The Crypto AI Fetch.ai Bounces Back After a 65% Drop: Analysis of June 27, 2024.

After reaching its ATH, Fetch.ai faced selling pressure that brought its price around $1. Let’s examine together the future prospects for FET.

Fetch.ai (FET) Price Situation

Since the rise of the AI sector, Fetch.ai has not slipped through the cracks of investors. Indeed, the AI crypto has increased by more than 6,400% since its lowest level reached in November 2022. FET first went from $0.05 to $0.60, then consolidated around $0.18 before finally rebounding and marking an ATH just below $3.50. Since reaching this level, the crypto has undergone bearish pressure that weighed on the FET price. It should be noted that this pressure was fueled by the overall decline in the crypto market. Nevertheless, the cryptocurrency saw its price more than halved.

Recently, it seems that the AI crypto found support in the value zone identified around $1.11. This allowed the Fetch.ai price to benefit from buying interest, supporting the medium and long-term upward trend of the cryptocurrency. Indeed, one can see that it is thanks to this momentum that Fetch.ai reintegrated its support at $1.3 and its 200-day moving average. Furthermore, this rise was strong enough to allow oscillators to rebound and thus show a slight recovery in FET dynamics. All these elements naturally suggest a resurgence of buying strength to come on Fetch.ai.

The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of independent traders active since 2017. There you will find Lives, educational content, and support around financial markets in a professional and friendly atmosphere.

A closer look at derivatives (FET/USDT)

The open interest of FET/USDT perpetual contracts has generally followed the direction of its underlying price. This indicates a healthy market, where buyers capitulate when the FET price drops. The liquidation data supports these claims, mostly showing the liquidation of buy positions in favor of sellers. This phenomenon even suggests short-term pessimism about the FET price, as illustrated by the negative funding rate. Each of these elements thus demonstrates dominant selling pressure on Fetch.ai’s perpetual contracts.

The liquidation heatmap for FET/USDT over three months reveals that the liquidation zone located between $1.8 and $2 was breached from below and unfortunately did not spur any buying interest. Currently, the most significant active liquidation zone is above the current price, precisely around $2.3. Below the current price, one can highlight the recent zone of $1.3. Price approaching these levels could trigger a massive influx of orders, increasing the risk of a period of increased volatility. These zones thus represent a crucial point of interest for investors.

Hypotheses for Fetch.ai (FET) Price

• If the FET price holds above $1.11, one could anticipate a bullish recovery up to $2.3. The next levels to consider if the bullish movement continues would be $2.8, a price level which, once crossed, would open the door to the FET ATH at $3.5. At this stage, this would represent an increase of over 117%.

• If the FET price fails to hold above $1.11, one might consider a return around $0.70 – $0.65. The next support to consider if the bearish movement continues would be around $0.50. At this stage, this would represent a drop of about 67%.

Conclusion

Since the rise of the AI sector, Fetch.ai has attracted the attention of investors, recording spectacular growth from its lowest levels. Despite bearish pressure due to the overall trend of the cryptocurrency market, Fetch.ai has shown signs of recovery. Is this due to the upcoming launch of the ASI Token? What is sure is that it will be crucial to closely observe price reaction to different key levels to confirm or refute current hypotheses. It is also important to stay vigilant against potential “fake outs” and market “squeezes” in any scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies may rapidly evolve due to other more fundamental factors.