The evolving dynamics of the Artificial Superintelligence Alliance (FET) suggest a significant bearish trend, with the formation of a negative price action pattern on the daily chart. Coupled with this, FET’s on-chain metrics, including future open interest, Long/Short ratio, and liquidation levels, further underscore a bearish market sentiment and hint at a potential price downturn.
FET Technical Analysis and Key Levels
Delving into expert technical analysis, FET finds itself at a pivotal support level defined by an ascending trendline and the 200 Exponential Moving Average (EMA) on the daily chart. A breach of this critical support, particularly if a daily candle closes below the $1.32 mark, could trigger a notable 20% price drop, steering FET towards the next support level at $1.045 in the foreseeable future.
However, there remains a glimmer of hope for a price reversal at the $1.26 level, which aligns with the golden Fibonacci level, offering potential robust support for the FET token.
Bearish On-Chain Metrics
The bearish sentiment is further accentuated by on-chain metrics. Insights from Coinglass reveal that FET’s Long/Short ratio is currently at 0.91, reflecting a pronounced bearish market outlook among traders. Furthermore, the future open interest for FET has seen a reduction of 2.7% in the last 24 hours and 1.66% in the preceding four hours. This decline in open interest indicates a market where traders are either liquidating their positions or displaying reluctance to initiate new ones.
In the current trading scenario, 52.35% of top traders are holding short positions, overshadowing the 47.65% who maintain long positions. This dominance of bearish sentiment suggests a propensity for further price declines in the near term.
FET’s Current Price Momentum
At present, FET is trading close to the $1.38 mark, having experienced a substantial price decline exceeding 5.5% over the past 24 hours. This period also witnessed a significant 40% drop in trading volume, indicating diminished engagement from traders and investors amidst prevailing market uncertainties.
In summary, FET appears to be navigating through a challenging phase, marked by bearish technical indicators and on-chain metrics. As the market sentiment leans towards negativity, close monitoring of key support levels and trading metrics will be crucial for traders and investors aiming to navigate these turbulent waters effectively.
