Fetch.ai (FET) Poised for Growth After Token Migration: Analysts Bullish
The price of Fetch.ai (FET), an Artificial Intelligence (AI)-focused cryptocurrency, has experienced fluctuations recently following the ongoing merger of three AI tokens into a single entity known as ASI (Artificial Superintelligence). While an initial price rally hinted at a retest of the $2 mark, a slight pullback has occurred. However, analysts remain optimistic about FET’s long-term prospects, citing on-chain data suggesting a potential buying opportunity.
The ASI merger currently in its first phase has seen a significant migration of tokens. Over 640 million SingularityNET (AGIX) and 224 million Ocean Protocol (OCEAN) tokens have transitioned to ASI, bringing the total to 864 million. Once complete, these tokens will operate under the Fetch.ai-led alliance.
Looking at on-chain metrics, experts point to the token’s 30-day MVRV (Market Value to Realized Value) ratio as a sign of potential undervaluation. The MVRV ratio helps determine if a cryptocurrency is overvalued or undervalued. A higher ratio suggests unrealized profits, enticing holders to sell. Conversely, a lower ratio indicates unrealized losses, encouraging holders to hold (HODL) onto their tokens.
Currently, FET’s MVRV ratio sits at -33.78%. Historically, this metric has placed FET within an “opportunity zone” when between -10.18% and -29.99%. This suggests the recent price dip might present a good buying opportunity.
Further supporting this notion is the “Bulls and Bears” indicator, which analyzes buying and selling activity on the network. In this context, “bulls” represent addresses responsible for 1% of the total trading volume, while “bears” represent those who sold a similar amount. With more bulls than bears currently, analysts anticipate a potential price increase.
Despite a recent correction phase that saw FET’s price drop by 42%, the token has shown signs of recovery. While a minor pullback to $1.39 occurred, technical indicators like the MACD (Moving Average Convergence Divergence) suggest the uptrend might continue. The MACD is a tool used by traders to identify trends by analyzing the movement of exponential moving averages. In FET’s case, the bullish MACD reading indicates the price could be poised for a surge.
Analysts project the next resistance level for FET to be $1.68, with a possibility of retesting $1.88 if this level is breached. However, they caution that selling pressure could disrupt this forecast, potentially pushing the price down to $1.04.
Overall, the outlook for Fetch.ai appears promising. The ongoing ASI merger and positive on-chain data suggest the token might be undervalued. With technical indicators hinting at an upward trend, FET could be an attractive option for long-term investors looking to capitalize on the potential of AI within the cryptocurrency space.
Related: How High Can Fetch.ai Soar? Expert Eyes $3.48 Price Target