The Artificial Superintelligence Alliance (FET) token continues to struggle under a wave of selling pressure, with its price steadily declining. As the broader cryptocurrency market grapples with bearish sentiment, FET finds itself breaking new lows, marking a rough start to 2025. The ongoing market turmoil, including significant losses seen in Bitcoin (BTC), has only added to the woes of FET holders. Given the current state of the market, the key question is whether $0.295 will mark the final bottom or if further losses are on the horizon.

Bearish Trends Continue for FET

Recent market activity reveals a strong bearish trend for FET. On the daily chart, both the Directional Movement Index (DMI) and the -DI indicators are positioned above the 20 threshold, signifying a confirmed downtrend. This indicates a lack of buying momentum, and the continued downward pressure on FET’s price suggests that the token is far from finding a bottom.

Adding to the bleak outlook, the Choppiness Index, which measures market volatility, stands at 39.92. This is a sign of reduced market fluctuations and a strong directional move. In this case, the direction remains bearish, signaling that selling pressure will likely persist in the near future. The On-Balance Volume (OBV) has also been trending downward since mid-December, further corroborating the absence of buying interest and highlighting the dominance of sellers in the market.

Loss of Key Support Levels

FET’s decline intensified following the breakdown of the $0.60 support level in early March. This level had previously been tested multiple times in February but ultimately gave way as the broader market continued to slide. The breach of this key support zone suggests that FET could face more downward pressure in the short term.

Fibonacci extension levels, which are commonly used to project potential price levels during a trend, indicate that FET is now approaching the 23.6% extension at $0.48-$0.52. This region could offer temporary resistance, potentially causing a short-term bounce. However, the overall trend remains bearish, making it more likely that the token will face further declines.

Watch for Support at $0.37-$0.42

Looking ahead, the $0.37-$0.42 range emerges as the next critical support zone for FET. If this level fails to hold, the token could quickly slide down to the 61.8% Fibonacci extension at $0.295. This would mark a significant drop, roughly 50% below its current value, and may represent a final bottom for the token, provided it finds sufficient buying interest at this level.

Historically, price action below this range could signal a capitulation event, where long-term holders are forced to sell their positions due to extended losses. If FET does hit the $0.295 mark, it would likely serve as a point of intense market focus, as traders look for signs of stabilization or a potential reversal.

A Risky Environment for FET Investors

The current market environment remains challenging for FET. With ongoing sell-offs, high liquidation volumes, and no clear signs of recovery, FET’s downtrend is expected to persist in the near term. While the $0.295 level could act as a potential support point, the risk remains high, and investors should exercise caution.

As long as selling pressure remains dominant and market sentiment stays bearish, FET’s recovery prospects will be limited. Traders should keep an eye on key support zones and prepare for the possibility of further price declines before any signs of stabilization emerge.

In conclusion, FET’s path forward is fraught with uncertainty. A break below the $0.42 range could push the token towards $0.295, which may serve as the final bottom. However, the outlook remains bleak for now, and further selling could follow unless the broader market environment improves. Investors should stay cautious and closely monitor the market’s response to these critical levels.