The recovery of Fetch.ai (FET) has commenced, but the popular AI token may not be able to fully recover its lost profits as it faces consolidation in the market.
Fetch.ai Investors on Hold
Over the past few days, there has been a noticeable bearish sentiment surrounding the price of the Fetch.ai AI token, causing concern among community members. The overall market decline has also deterred many potential investors.
This can be observed through the decline in the network growth rate, which is calculated based on the number of new addresses in the network and their activity. The indicator has reached a multi-month low after the correction, indicating that Fetch.ai is losing ground in the market and creating a bearish atmosphere.
Growth of the Fetch.ai network. Source: Santiment
In addition, some network participants may not be resilient when the market signals a sell-off due to the divergence of intraday active addresses (DAAs) and price.
Divergence occurs when the price of a cryptocurrency and its DAA move in opposite directions, indicating a potential discrepancy between market valuation and network usage. In the case of FET, this condition is met, and it could potentially trigger selling pressure.
DAA Divergence and Fetch.ai Prices. Source: Santiment FET forecast: sideways movement
At the time of writing, Fetch.ai is trading around $1.93, just below the $2.00 mark, and it is likely to experience further consolidation amidst mixed market signals. The upcoming Bitcoin halving event is expected to lead to an increase in the price of Bitcoin, which would inevitably impact altcoins. However, the lack of support from investors could create bearish conditions for Fetch.ai’s price.
Ultimately, Fetch.ai’s price may consolidate sideways between the reliable resistance level at $2.26 and the support level at $1.71.
1-day FET/USDT chart. Source: TradingView
A breakout above or below these boundaries could trigger a bullish or bearish reaction, altering the current scenario for the coin.
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