Crypto IA Fetch.ai Rebounds After a 65% Drop: Analysis of June 27, 2024.

After reaching its ATH, Fetch.ai faced selling pressure that brought its price back to around $1. Let’s take a look at the future outlook for FET.

Fetch.ai (FET) Price Status

Since the rise of the AI ​​sector, Fetch.ai has not slipped through the cracks of investors. Indeed, crypto AI has increased by over 6,400% since its lowest level reached in November 2022. FET initially rose from $0.05 to $0.60, before consolidating towards $0.18 to finally rebound and mark an ATH just below $3.50. Since reaching this level, the crypto has suffered downward pressure which has weighed on the price of FET. It should be noted that this pressure was fueled by the overall decline in the crypto market. Still, the cryptocurrency has seen its price more than halved.

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

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.

Focus on derivatives (FET/USDT)

The open interest of FET/USDT perpetual contracts has broadly followed the price direction of its underlying. This indicates a healthy market, where buyers capitulate when the FET price falls. The liquidation data demonstrates these remarks with mainly liquidations of long positions for the benefit of sellers. This phenomenon even suggests short-term pessimism on the FET price, as illustrated by the negative financing rate. Each of these elements thus demonstrates a dominant selling pressure on Fetch.ai's perpetual contracts.

The three-month FET/USDT liquidation heatmap reveals that the liquidation zone between $1.8 and $2 was breached from below and unfortunately did not generate any buying interest. Now, the most significant active liquidation zone is above the current price, precisely around $2.3. Below the current price, we can highlight the recent $1.3 zone. The price approaching these levels could result in a massive triggering of orders, increasing the risk of a period of heightened volatility. These areas therefore represent a crucial point of interest for investors.

Hypotheses for the price of Fetch.ai (FET)

• If the FET price remains above $1.11, we could anticipate a bullish recovery up to $2.3. The next levels to take into account 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 point, that would represent an increase of more than 117%.

• If the FET price fails to stay above $1.11, we could envisage a return to around $0.70 – $0.65. The next support to take into account, if the bearish movement continues, would be around $0.50. At this point, that would represent a drop of about 67%.

Conclusion

Since the rise of the AI ​​sector, Fetch.ai has attracted the attention of investors, seeing a dramatic increase from its lowest levels. Despite downward pressure from the overall cryptocurrency market trend, Fetch.ai has shown signs of recovery. Is this due to the upcoming launch of the ASI Token? What is certain is that it will be crucial to carefully observe the price reaction at the different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.