FET Breaks Free: A Bullish Breakout After a Year-Long Slump
After being stuck in a downtrend for a staggering 266 days, Fetch.ai’s native token, FET, has finally broken free. This bullish breakout signals a potential trend reversal, raising hopes for a significant price increase. With the current price hovering around $1.42, analysts are eyeing a potential surge towards $1.60. However, the road to recovery might not be smooth sailing.
Resistance Ahead: Can FET Overcome the $1.60 Hurdle?
While the recent breakout is encouraging, a significant hurdle awaits FET at the $1.60 level. This zone represents a strong resistance point, and failure to breach it could lead to a double-bottom formation. This pessimistic scenario would be further amplified by a potential Bitcoin correction towards $80,000.
Read more: FET $154.86 Million Signal Points To A Massive 10,000% Rally!
FET Technical Analysis: A Closer Look at Key Levels and Indicators
A closer examination of the lower time frames reveals some crucial details. The breakout above the descending trend line signifies strong buying pressure. However, the current price level faces significant resistance between $1.60 and $1.65. A decisive close above this area is essential to confirm a sustained uptrend and open the door for a potential climb towards the $2.20-$2.50 range in the coming months.
Conversely, a failure to conquer this resistance could trigger a pullback towards $1.20 or even the strong support zone around $0.72. The next few weeks will be crucial to determine whether FET continues its upward trajectory or consolidates at lower levels.
Read more: FET Bullish Momentum Stumbles: A Deeper Dive!
On-Chain Data Points to Network Growth
Despite the price volatility, Fetch.ai’s network has witnessed a significant increase in activity. Daily active addresses and new addresses have both seen substantial growth, indicating a potential rise in user engagement. This trend aligns with the recent price spikes, suggesting a correlation between network usage and market sentiment.
Read more: FET’s Stumbling Block: A Potential 16% Dip?
Liquidation Risks: A Double-Edged Sword
While a price increase is a welcome sign, it’s important to acknowledge the potential dangers of leverage. The presence of significant long liquidations above $1.50, peaking near $1.60, indicates increased risk for over-leveraged buyers if a retracement occurs. Conversely, short liquidations are concentrated below $1.40, suggesting a potential cascade of short position closures if the price drops further.
The Verdict: A Cautious Optimism
The recent FET breakout is a positive development, but investors should remain cautious. The resistance level at $1.60 presents a significant obstacle. Network growth is promising, but the market remains volatile. Thorough research and a risk-management strategy are crucial before making any investment decisions.
