The world of cryptocurrency is ever-changing, and FET is no exception as it faces significant downward pressure. This pressure is driven by bearish signals, notably the Relative Strength Index (RSI), which suggests that the token could experience further declines. With recent movements bringing FET closer to vital support levels, investors are left questioning whether a price bottom is near or if the market is poised for additional losses.
Understanding the Impact of RSI on FET
In recent analyses, the 4-hour chart for FET reveals a marked bearish momentum, as the token slips below the 100-day Simple Moving Average (SMA) while nearing the pivotal $0.966 mark. This movement is a clear indicator that bearish forces are currently overshadowing any bullish recovery attempts, potentially paving the way for further downward trends.
Insights from the 4-Hour Chart
The 4-hour chart analysis highlights that the RSI has dipped to 34% following an unsuccessful rally attempt that halted at 46%. An RSI close to 30% typically hints at a potential reversal; however, in this scenario, it may also point to a continued bearish trajectory unless a surge in buying interest emerges to support a price rebound.
Daily Chart Observations
On the daily chart, FET is exhibiting clear signs of pessimism as it attempts to breach the 100-day SMA. This downtrend underscores increasing selling pressure and negative market sentiment, which collectively heighten the risk of the asset falling below the SMA and moving toward the $0.966 target. A successful breach here could herald further declines, pushing the price down to this crucial support level.
RSI Trends on the Daily Chart
The 1-day RSI further confirms the growing negative pressure on FET, as the signal line has recently dropped below the 50% threshold, now resting at 39%. This lower range suggests an increase in seller dominance, potentially setting the stage for additional price drops unless a resurgence in buying momentum can alter the current sentiment.
Key Support Levels: Can $0.966 Hold Against the Bears?
As FET’s price continues to experience downward pressure, the $0.966 mark emerges as a vital support level. A breach below this threshold may signal a significant correction, potentially driving the price further down to the $0.459 level or even lower.
Potential for Reversal
On the other hand, if FET manages to maintain its position above $0.966, it could indicate a possible reversal. Such a scenario might allow bulls to regain some control over the market, propelling the price upwards towards the $1.86 resistance level and possibly beyond.
