Fetch.ai (FET) Faces Uphill Battle: Why Another Rally Might not Succeed
The price of Fetch.ai (FET) has been stagnant for the past month, with no clear direction in sight. While many investors are hoping for a bullish breakout, there are several challenges standing in the way.
One major hurdle is the declining investor interest in the project. Network growth has seen a downturn, indicating a decrease in market traction. New addresses being formed on the network are at a two-month low, suggesting that investors are pulling back. Additionally, active investors are refraining from participating in the network, leading to a decline in transactions. This pessimistic sentiment is overshadowing any optimism in the market.
As active addresses decline, volatility also drops, leaving Fetch.ai’s price susceptible to consolidation or even a decline. Currently trading at $2.54, the price has failed to breach the resistance level at $2.85 in the past 90 days. With declining investor support, it is likely that the situation will remain the same in the near future.
The Relative Strength Index (RSI) further supports the bearish outlook. It is currently below the neutral line at 50.0, indicating that Fetch.ai’s price is struggling to recover and is vulnerable to consolidation.
However, there is still a chance for a rally or correction if FET falls below the support level at $2.40 or breaks out above $2.85. This would invalidate the neutral thesis and potentially spark a new trend.
In conclusion, Fetch.ai faces several challenges that make another rally unlikely at the moment. Investor interest is waning, network growth is declining, and price volatility is low. Until these issues are addressed, the price is more likely to continue consolidating or even decline further.