news 
FET nears breakout: Could a 20-30% rally be next?
Fetch.AI’s Artificial Superintelligence Alliance token (FET) has been consolidating around the $1.33 mark, raising hopes of a potential 20-30% price increase. As FET’s on-chain activity and technical indicators take a turn for the better, traders are increasingly optimistic about the prospects of a breakout above the critical $1.38 resistance level.
Currently trading at $1.33, FET has been trending downwards since December, only to recently find support around this level. The crypto community is now eyeing a potential reversal and surge higher, fueled by increasing network activity, bearish sentiment shifts, and a mix of technical signals that hint at possible momentum.
Recent on-chain data suggests a significant increase in new addresses (47.36% growth over the past week) and an uptick in active users (12.46% rise). This sudden interest and enthusiasm among investors indicates heightened confidence, which often precedes dramatic price movements.
While exchange reserves have marginally increased by 0.12%, this modest growth is not substantial enough to dismiss FET’s growing allure. Traders are advised to keep a watchful eye on reserve levels for any signs of accumulation or potential reversal.
FET’s technical indicators paint an encouraging picture, with the moving average (MA) cross potentially setting the stage for an upward trajectory. Meanwhile, the Average Directional Index (ADX) at 15.76 indicates weak trend strength, requiring further validation from price action and volume.
However, liquidation data from Coinglass reveals a stark imbalance in short- and long-term positions. Notably, $13K in short liquidations have occurred compared to $1.56K in longs, implying bearish sentiment dominance in the near term. If FET breaks above the $1.38 mark, this bearish overconfidence could result in significant short squeezes, amplifying upward momentum.
In conclusion, FET’s amalgamation of favorable on-chain activity, technical signals, and potential liquidation-driven price surges presents an attractive bullish setup for a 20-30% rally. A breakout above $1.38 could prove to be the catalyst that sets this token on a path towards more substantial gains in the coming days.
Disclaimer: The article is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment, and every reader is advised to do their own research before making any decisions.
Source: ambcrypto.com
