FET Loses Steam After Rising 64% in September – Price Entering Overbought Zone
FET in an uptrend since August low but the momentum is slowing down. Retracement likely next.
Key Takeaways
- FET broke out of a descending channel, signaling a bull phase.
- The current uptrend is likely near completion; it is a $1.86 short-term target.
- The expected retracement could form a higher low of around $1.14.
FET Price Analysis
Artificial Superintelligence Alliance (FET) began a substantial uptrend on Nov. 26, 2022, starting from a support level of $0.070.
This rally peaked near $3.5 by March 28, marking the completion of this bullish phase. The price entered a bearish phase, forming a descending channel.
This was most likely a WXY correction, bringing the price down by 78% to a low of $0.72 on Aug. 5. After moving sideways around those levels, from Aug. 20, we saw an uptrend start, which led to a breakout above the descending channel, signaling a new bull phase.
FET reached a high of $1.63 on Sept. 20, but the momentum slowed, only bringing the price up to $1.73 in the next six days. This is likely because the rise from Aug. 5 developed fully, entering the overbought zone.
As such, we can now expect a potential retracement, which will be its first bull market correction, forming a macro higher low.
FET Price Prediction
Zooming into the hourly chart and examining the wave structure behind the last uptrend, we can see that it is either completed or near completion, with one higher high ahead.
As we can count the five-wave pattern, FET is currently in its ending wave from Sept. 6, with its lower degree count suggesting one more high could be seen before it fully develops.
Our short-term target is set at $1.86 area, but there is also a chance that its recent high concluded the five-wave pattern.
Either way, we can expect a downturn in the form of an ABC correction. At its optimal point of 0.618 Fibonacci and anchored at the projected higher high, we came up with a target of $1.14.
This target may vary depending on the momentum and the possibility of the uptrend being completed. However, the price shouldn’t fall below $1 in both cases, if FET started a new bullish phase from Aug. 5.
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