FET at Risk of Plunging 40% Amid Bearish Warning Signs

Key Takeaways

• FET price has decreased by 20% in a month.
• A bear flag on the weekly chart signifies further correction for the token.
• The daily chart also aligns with the prediction, with targets at lower values.

Since retesting $2 in December 2024, FET’s price has found it challenging to replicate the kind of performance it has during the first quarter of the same year.

Around that period, the token rallied to $3.47 for the first time since its launch. Months later, FET transitioned to the Artificial Superintelligence Alliance merger with SingularityNET (AGIX) and Ocean Protocol (OCEAN).

Despite the merger, FET’s price failed to rally to a new high. As a result, several patterns indicate a steep FET decline if critical support levels fail to hold.

FET Struggles Continues Amid Bearish Pattern

At the time of writing, FET traded around $1.35. This value represents a 20% decline within the last month.

Even though FET has declined from its peak, the Relative Strength Index (RSI) indicates that FET is not yet in oversold territory. Typically, an asset is considered oversold when the RSI falls below 30.

However, as shown below, the RSI has dropped below the midpoint, indicating bearish momentum with no clear signs of an imminent rebound.

Furthermore, analysis of the weekly timeframe reveals the formation of a bearish flag. A bear flag is a pattern characterized by two consecutive declines separated by a brief consolidation period.

The pattern begins with a steep, almost vertical price drop—forming the flagpole. Then, a short-lived bounce follows it, indicating the potential continuation of the downtrend.

For FET, the price briefly jumped from $1.15 to $1.35. However, the bear flag formation suggests a 40% price decrease. If validated, the token could decline to $0.81 in the short term.

FET Price Forecast: No Bounce in Sight

The daily chart appears to align with the bearish forecast. One reason for this is the head and shoulders pattern formed on the timeframe.

A head and shoulders pattern appears when three peaks appear on a chart. The first is a smaller peak (left shoulder). It is then followed by a higher peak (head) and then another smaller peak ( right shoulder).

This pattern indicates a bullish to bearish reversal and is confirmed by a breakdown below the neckline.

At press time, FET’s price is still above the neckline. However, the chart shows a drop in volume.

This drop in volume indicates low buying pressure around the token. If the volume fails to pick, then FET might pull back initially to the 0.236 Fibonacci retracement level at $1.15.

Failure to hold this position could accelerate the downtrend. If that happens, the FET price could align with the forecast shown by the weekly chart, and drop to $0.80 in the process.

Alternatively, if FET resists breaking below the neckline, this prediction might not come to pass. Instead, the token’s value might climb to $1.92 at the 0.786 Fibonacci level.