In recent market movements, FET is showing signs of a bearish trend, with the Relative Strength Index (RSI) indicating potential further declines. As the RSI remains in bearish territory, momentum appears to favor sellers, leading to concerns about a possible deeper downturn.
Amidst the mounting downside pressure, focus has shifted to the vital $0.9 support level. Maintaining this level is crucial to prevent additional losses, as a breakdown could result in more significant declines. This article delves into the ongoing bearish extension in FET, examining how the RSI is signaling increased bearish pressure and what it could mean for future price movements. By analyzing key technical indicators and market trends, we explore whether FET is likely to face more declines or if potential support levels might trigger a rebound.
RSI Signals Growing Downside Momentum For FET
FET has recently entered bearish territory on the 4-hour chart, slipping below the 100-day Simple Moving Average (SMA) and edging toward the crucial $0.9 support level. This decline below the 100-day SMA indicates weakening momentum, with sellers gaining a foothold in the market.
An analysis of the 4-hour Relative Strength Index reveals that the signal line has dropped below 50%, currently sitting at 37%, which reflects increased selling pressure and reduced buying interest. With the RSI in this range, it suggests the possibility of further downside movement for FET, highlighting a lack of bullish conviction in the market.
Moreover, on the daily chart, FET is displaying negative momentum after failing to surpass the $1.8 resistance level. This struggle is underscored by multiple bearish candlestick formations, indicating persistent selling pressure. Although the price remains above the 100-day SMA, typically a bullish signal, the inability to breach the $1.8 resistance implies weakening upward strength, potentially setting the stage for extended losses.
A detailed examination of the RSI on the 1-day chart shows the RSI signal line has fallen to 44%, recently dropping below the critical 50% threshold. An RSI reading under 50 typically signals bearish sentiment, indicating the asset is losing momentum. Such a decline could herald deeper corrections for FET unless a reversal occurs.
Key Support Levels To Watch Amid Bearish Sentiment
With bearish sentiment dominating the market, the $0.9 support level has become particularly significant for FET. A breach below this level could trigger increased selling pressure, potentially driving the price down toward the $0.4 support mark and beyond.
If FET manages to maintain its position above the $0.9 support level, it could open the door for a rebound, allowing the price to move back toward the $1.8 resistance zone. A successful breakout above this critical resistance level might ignite a surge in buying activity, leading to further gains as bullish momentum builds. Monitoring how FET responds to these levels will be crucial, as they will determine whether a recovery is imminent or if bearish pressure will continue to dominate.
