FET Price Holds Support After 5-Month Low, Bulls Look for Recovery

Key Takeaways  

• FET became oversold and has bounced off the support at $0.97 on the daily chart
• If bulls hold the support, the altcoin’s price could climb toward its December peak.
• However, analysis of the 4-hour timeframe presents a bearish outlook for FET.

The Artificial Superintelligence Alliance (FET) price dropped to $0.97 on Tuesday, Jan. 28, marking its lowest point since September 2024. However, earlier today, the token reclaimed the $1 mark.

This rebound has rekindled hopes that FET could again continue to hit higher values as it did in December. For that to happen, demand for the token has to be significantly higher than it is currently.

Will this become a reality? Let’s find out in this analysis.

FET Fails to Extend Its Correction

The FET price is currently at $1.02, a mild 4% increase after dropping to a five-month low two days ago.

The daily chart shows that the initial drop to $0.97 has supported the cryptocurrency. Interestingly, the Relative Strength Index (RSI) also supports this technical setup.

As seen in the image below, the RSI on the FET/USD daily chart dropped to 30.00, and the price dropped to $0.97. The RSI measures momentum by examining the speed and size of price changes.

It also spots when an asset is overbought or oversold. When the reading is above 70.00, it is overbought. But since it dropped to 30.00 earlier, FET became oversold.

As of this writing, the RSI reading has turned upward. Alongside the recent price increase, this implies that FET might have strong support  to keep the price trading higher.

When a similar thing happened in September, FET price action formed a similar setup; the price climbed to $1.72. Therefore, if history rhymes with the current outlook, then FET might continue climbing.

FET Price Forecast: Token Remains on the Edge

Despite the bullish signs flashed on the daily chart, the 4-hour timeframe presents a different outlook. The Supertrend indicator shows a red line above the FET price on the chart.

When the green line of the Supertrend is below the price, it indicates support and a possible price increase. On the flip side, if the red line of the indicator is above the price, it indicates resistance and a decline could be on the cards.

With the difference from the daily chart, the FET price might experience a drawdown, especially if buying pressure fails to intensify. If that is the case, the cryptocurrency’s value risks a decline to $0.95.

If selling pressure rises, the altcoin might continue to decline below this region. In that scenario, the token could fall to $0.75.

However, if demand for the token increases and FET holds support at $0.97, the rally could climb to $1.44.

If buying pressure increases, FET might jump to $1.72 and possibly move to $2.