Artificial Super Intelligence Alliance (FET), a leading AI cryptocurrency token, has recently seen a significant 62% drop, causing concern in the market. However, the token has now reached a critical support level that could signal the start of a major price reversal. With a key technical pattern emerging and increasing bullish sentiment in the market, FET might be on the verge of a 45% rally in the near future.

Technical Analysis: A Double-Bottom Pattern Forms

CoinPedia’s recent technical analysis suggests that FET is showing signs of a bullish double-bottom pattern on its weekly chart. A double-bottom pattern occurs when an asset’s price hits a low point, recovers, dips again to nearly the same level, and then rises. This pattern is often seen as a precursor to a reversal of the current downtrend, signaling potential upside.

FET is currently at a crucial support level of $0.75, which has historically been a strong point for price reversals. After experiencing the steep 62% decline, the asset is now at a point where it could bounce back. The fact that FET is forming a double-bottom pattern at this level increases the likelihood of a reversal, suggesting that the price could rise in the coming weeks.

Additionally, the token’s weekly chart shows a bullish divergence, where the price is moving downward while momentum indicators are moving upward. This divergence often indicates that the downtrend is losing strength and a reversal could be in the works. All these technical factors combined present a strong case for an impending price rebound.

Price Prediction: A 45% Surge Possible

Looking at the current market sentiment and FET’s price action, it appears that the token could surge by 45% if it successfully holds above the key support of $0.72. In this scenario, FET could target its first resistance level of $1.10. A move to $1.10 would represent a 45% rally from the current price of $0.77, which is where the token is currently trading.

The fact that FET is trading above the 200 Exponential Moving Average (EMA) on the weekly timeframe also supports a bullish outlook. The 200 EMA is often used by traders as an indicator of long-term trends. When an asset is trading above this level, it signals that the overall trend is upward. FET’s position above this moving average further strengthens the case for a potential price rally in the near future.

Bullish On-Chain Metrics: Institutional Interest Grows

In addition to the technical analysis, on-chain metrics provide further confirmation that FET is likely to see an upward price movement. Data from Coinglass reveals a 25% increase in FET’s Open Interest (OI) over the past 24 hours, indicating growing bullish sentiment in the market. Open Interest refers to the total number of outstanding contracts or positions in a market. A rising OI suggests that more traders are betting on a price increase, which typically signals a bullish outlook.

Moreover, exchanges have seen an outflow of $1.09 million worth of FET tokens in the past day, according to spot inflow/outflow data. This suggests that investors are accumulating FET, potentially in anticipation of future price gains. Such accumulation, combined with the strong technical indicators, could create buying pressure that drives the price higher.

Current Price Momentum and Market Sentiment

As of now, FET is trading near $0.77, having gained around 1.20% in the last 24 hours. Despite this modest increase, trading volume has surged by 43%, which indicates growing interest from traders and investors. Increased participation from the market is often a sign of rising confidence in an asset, and in FET’s case, it could point to a future price surge.

The combination of strong technical patterns, positive on-chain metrics, and growing market sentiment paints a promising picture for FET’s future. If the token manages to maintain its position above the key $0.75 support level, a 45% price increase could be on the horizon.

Conclusion

Artificial Super Intelligence Alliance (FET) has faced significant price declines in recent weeks, but technical indicators and on-chain data suggest that the token may be ready for a reversal. With a double-bottom pattern forming, bullish divergence on the charts, and strong institutional interest, FET is primed for a potential 45% rally. Traders and investors should closely monitor the $0.75 support level as a key threshold, as maintaining this level could lead to substantial upside momentum in the near future.