Key Takeaways
FET was one of the best performers in the crypto market in the first quarter of 2024. The price has increased nearly 600% since the start of the year, reaching a new all-time high of $3.48.
As the leader of Artificial Intelligence (AI) tokens, its rise fueled speculation of an AI token super cycle.
However, the rally lost steam. Firstly, FET fell by 80% since the high, and despite an attempt to regain its footing in August, it could not maintain the upward movement and tumbled again in December.
The bearish momentum has carried over in 2025, causing a breakdown from long-term horizontal and diagonal support levels and sparking fears that the bear market has begun.
The weekly time frame chart shows that FET has fallen since its all-time high price of $3.48 in March. Initially, the decline halted at the $0.87 horizontal area (white icon). This is a critical area since it previously acted as the all-time high resistance before turning to support.
However, while the ensuing bounce was substantial, it was only a relief rally. The increase was contained inside an ascending parallel channel, which often holds corrective movements.
After breaking down from the channel at the start of 2025, the FET price broke down from the $0.87 horizontal area, falling to a low of $0.598. So far, FET has fallen by nearly 80% since the aforementioned high.
Besides the horizontal support area, FET also crashed below an ascending support trend line (dashed) that had existed since the 2022 low, indicating that the correction has started.
If the decrease continues, the next closest support will be at $0.45.
Technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) fall below their bullish thresholds at 50 and 0, respectively.
So, the weekly time frame chart suggests the FET price will continue falling until the $0.45 support.
The FET wave count suggests the price is nearing the end of its correction, though there is slightly more downside left. According to the count, FET completes wave C in an A-B-C correction (white) that started with the all-time high. Giving waves A:C the same length leads to a low of $0.44, coinciding with the previously outlined horizontal support area.
The sub-wave count (black) shows that FET is completing wave four in a five-wave downward movement that creates wave C. So, the ongoing bounce is part of sub-wave four, after which another downward movement will follow.
Afterward, the reaction once the price gets there will determine if the decrease is an A-B-C correction or a five-wave downward movement.
If it is the former, a significant bounce will follow. However, if FET breaks down, it will likely decrease to the next horizontal support at $0.20.
The FET price has decreased from a long-term horizontal and diagonal support level. It is likely to continue decreasing until it reaches the $0.44 horizontal support level.
The reaction once it reaches that level will be key in determining the future trend’s direction.