Fetch.ai (FET) has been experiencing a strong uptrend even as the overall cryptocurrency market cools down. However, there are indications that FET may face corrections and potentially hit a new all-time high.
A significant factor that could affect FET is the potential loss of support from its investors. With almost 98% of the circulating supply currently in profits, there is a high likelihood of profit-taking occurring. When more than 95% of the supply is in profits, it often signals a market top and the possibility of a reversal or correction. The recent decline in price can be seen as a validation of this market top. As 93% of the supply is still in profit, it is possible that further profit-taking may occur, leading to a decline in price.
Another factor contributing to the potential decline in FET’s price is the loss of traction in the market, as indicated by network growth. When the addition of new addresses slows down, it suggests that investors are hesitant to invest in the asset. This lack of interest may result in bearish momentum and a subsequent price decline.
Considering these factors, it is likely that FET’s price will consolidate or decline. Currently, the price is close to losing the psychological support level of $2.9 after breaking the 50-day Exponential Moving Average (EMA). If the aforementioned factors persist, FET could potentially decline to the support level of $2.4, which has been tested multiple times in the past.
However, there is still a possibility for FET to maintain support above $2.9 and regain bullish momentum. If the price can flip the 50-day EMA into support, it may rise to $3 and beyond, potentially reaching a new all-time high.
Disclaimer: The analysis above is not financial advice; it is purely an assessment of the current market trends. Investors should conduct their own research before making any investment decisions.