The price of Fetch.ai (FET), recently rebranded as Artificial Superintelligence Alliance (FET), continues its downward spiral, dropping below the crucial $1 mark for the first time in months. This decline comes amidst a challenging cryptocurrency market where altcoin prices have been battered.
FET, currently trading at $0.71, has lost a staggering 78.32% from its all-time high reached in March. While the price struggles, trading volume has seen a surprising surge. According to Santiment, a crypto data analysis platform, FET’s trading volume skyrocketed by 245% in the last 24 hours, reaching close to $300 million.
This surge in volume, however, paints a concerning picture. Typically, rising volume alongside a rising price signifies a strengthening uptrend. In FET’s case, the opposite seems to be true. The dramatic increase in volume, coupled with the price drop, indicates significant selling pressure, potentially leading to a further decline.
This development is particularly surprising for FET holders who anticipated a price boost from the recently announced Artificial Superintelligence (ASI) merger. The merger, involving three cryptocurrencies, resulted in an increased circulating supply of FET. While a larger supply typically translates to a higher market capitalization (total value of all outstanding tokens), the opposite has occurred for FET.
Despite the incomplete merger, FET’s market cap reached a high of $3.32 billion on July 27th. However, by press time, the token has lost a significant chunk of its value, dropping to a mere $1.78 billion.
Technical indicators also paint a bearish picture for FET. According to analysts, bulls had previously defended the $1.05 support level, but on August 2nd, the price breached this critical support zone. This development suggests a weakening trend for FET.
Furthermore, BeInCrypto, a cryptocurrency news website, highlights that FET currently trades below its 20-day Exponential Moving Average (EMA). The EMA is a technical indicator used to gauge the overall trend of an asset. When the price trades above the EMA, it suggests a bullish trend. Conversely, trading below the EMA, as is the case with FET, indicates a bearish trend with a potential for further price decline.
Analysts predict that if current market conditions remain unchanged, FET’s value could plummet to as low as $0.69. However, a potential increase in buying pressure could see the price recover back to the $1 mark.
In Conclusion
While the ASI merger initially sparked investor optimism, the recent price movement and technical indicators suggest potential trouble for FET. Investors should closely monitor market developments and conduct thorough research before making any investment decisions.
