Artificial Superintelligence Alliance (FET) Breaks Free from Falling Channel, Targets Higher Highs

Key Takeaways

• FET broke out of a descending channel, a typically bearish pattern, indicating potential for further gains.
• The MFI shows rising buying pressure, suggesting that FET could break above the $0.63 resistance.
• If bullish momentum continues, FET could rise to $0.75, though bearish sentiment could lead to a decline.

FET, the native cryptocurrency of the Artificial Superintelligence Alliance project, has seen its price rise 10% in the last seven days. This price increase comes after an underwhelming Q1 performance.

During the first quarter, which is historically associated with strong altcoin surges, FET’s price dropped from $1.65 to $0.43. As of this writing, the market value has bounced to $0.47.

CCN observed that the altcoin rebounded after breaking free from a pattern that kept it suppressed. But is FET positioning itself for a stronger rally?

FET Rebounds from Q1 Dip

On the daily chart, FET’s price formed a descending channel between February and early April. A descending channel is a bearish technical pattern in which price moves within two parallel trendlines: one sloping downward as resistance and the other sloping upward as support.

Typically, an extended correction occurs when the price breaks below the channel’s lower trendline. However, that was not the case with FET.

Instead, the cryptocurrency’s value rose above the upper trendline. According to the Money Flow Index (MFI), the breakout above the upper trendline was backed by increased volume.

As shown below, the MFI on the FET/USD daily chart has risen above the midpoint, indicating rising buying pressure. With support at $0.39, FET’s price could break above the resistance near $0.63.

Selling Pressure Wanes

In line with this, on-chain data from IntoTheBlock shows that Coins Holding Time has increased. As the name implies, the metric tracks how long a cryptocurrency has been held without being sold or transacted.

An increase in the holding time is typically a bullish sign. However, a decrease, on the other hand, indicates rising selling pressure, which is bearish.

As of this writing, FET’s holding time has increased by 100% within the last seven days. If this trend continues, it could put upward pressure on the price.

FET Price Set for Extended Surge

Concerning the short-term prediction, CCN observed that the Bull Bear Power (BBP) has held its ground above the zero line. The BBP compares the strength of bears to that of bulls.

When the BBP reading is positive, bulls are dominant. A negative reading, on the other hand, indicates the dominance of bears.

Since it is the latter, FET’s price is likely to climb higher. If this trend continues, the cryptocurrency could experience an upswing to $0.75 at the 0.786 Fibonacci level.

In a highly bullish case, FET could rally to $1 at the 0.618 Fibonacci ratio. However, if bears overpower bulls, this thesis might not pass.

In that scenario, FET’s market value could drop to $0.33.