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FET Nears Breakout: Could a 20-30% Rally Be Next?
Artificial Superintelligence Alliance (FET) is poised to stage a remarkable comeback, with its recent consolidation phase suggesting a potential breakout above the $1.33 mark. If this scenario materializes, it could be accompanied by a significant 20-30% rally.
In the short-term, FET’s price action has been characterized by a descending channel formation, with the critical resistance level set at $1.38. A move beyond this threshold could propel the asset towards the target zone of $1.60, representing the anticipated 20-30% surge.
Historical data reveals that FET has consistently broken out of similar setups in the past, which could increase the likelihood of a breakout above $1.38. However, it is essential to emphasize that sustained volume and bullish momentum are necessary to validate this scenario and attract further investor interest.
Furthermore, growing on-chain activity and technical indicators suggest that market sentiment may be shifting in favor of FET. New addresses have increased by a staggering 47.36% over the past week, accompanied by a rise in active addresses by 12.46%. These figures indicate heightened interest in FET and expanding adoption within its ecosystem.
Moreover, the rising exchange reserves, although remaining cautious at 471.4M FET, signal that traders are holding their coins on exchanges with caution. However, any shift towards lower reserves could imply accumulation and potentially create upward price pressure.
The technical picture is also painting a mixed but slightly bullish scenario. The moving average (MA) cross presents an upward trajectory, bolstering the argument for a potential breakout. Conversely, the Average Directional Index (ADX) remains at 15.76, indicating weak trend strength, which necessitates confirmation from price action and volume.
Additionally, liquidations have reached $13K in short liquidations compared to just $1.56K in longs, highlighting bearish sentiment dominance in the near term. However, a breakout above $1.38 could trigger substantial short liquidations, amplifying bullish momentum and driving a sharp price surge.
In conclusion, FET has all the necessary elements in place for a 20-30% rally if it breaks above the $1.38 resistance level. The confluence of increasing network activity, favorable technical signals, and potential liquidations suggests a strong bearish setup. As such, FET appears poised to deliver on its rally expectations in the near future.
Source: ambcrypto.com
