The price of FET, the native token of the Artificial Superintelligence Alliance, has experienced a significant decline over the past 24 hours, dropping by 18%. After peaking at $1.62 yesterday, FET’s price has now plummeted to $1.30, triggering concerns among traders and investors about the token’s short-term outlook.

This recent decline places FET among the top losers in the cryptocurrency market today, and there are signals suggesting that the altcoin might face further downward pressure. Let’s delve into the key factors driving this decline and what investors can expect going forward.

Coin Holding Time Falls, Suggesting Increased Selling Pressure

One of the primary metrics pointing to the ongoing decline in FET’s price is a sharp decrease in the “Coin Holding Time” (CHT). Coin Holding Time measures how long investors hold onto their tokens before selling or trading them. Typically, when this metric rises, it indicates a positive outlook from holders, as they are confident in the asset’s future performance and are unwilling to sell.

However, FET’s Coin Holding Time has seen a dramatic drop of 83% over the last week, signaling a shift in investor sentiment. The drop suggests that holders are less convinced about the short-term potential of the token, which has led to an increase in selling activity. When holders start to sell their positions, it puts downward pressure on the price, which appears to be the case with FET right now.

As of the latest data, this decrease in Coin Holding Time is a bearish signal. It implies that investors are losing confidence in the token, and without renewed buying interest, the price may continue its slide below the $1.30 mark.

Profitability of FET Holders Declines: Is the Momentum Shifting?

Another key indicator to assess the state of the market is the Historical In/Out of Money (HIOM) metric. This metric helps to identify the proportion of holders who are currently in profit or at a loss, offering a glimpse into the strength of buying or selling momentum.

On November 11, approximately 74% of FET holders were in the money, meaning they were holding positions that were profitable at that time. However, as of the most recent data, this figure has decreased to just 53%. This drop indicates that a significant portion of holders are now underwater, having seen their positions move into the red.

This shift in profitability suggests that fewer investors are inclined to buy FET, and those who are in profit may be looking to sell to lock in gains, which further weakens buying momentum. As a result, FET’s price may struggle to gain upward traction in the near term.

Key Exponential Moving Averages (EMAs) Point to Limited Support

A technical analysis of FET’s price chart reveals that the token has fallen below key Exponential Moving Averages (EMAs), which is another bearish signal. EMAs are important indicators in technical analysis because they help identify areas of support and resistance.

Currently, FET is trading below both the 20 EMA (blue) and the 50 EMA (yellow). When the price is below these EMAs, they tend to act as resistance, preventing the price from rising. Since FET has dropped below these important levels, there is no solid support to prevent further declines. This lack of support suggests that the price could continue its downward movement, especially if selling pressure remains strong.

Price Prediction: Will FET Drop to $1.24 or $1.13?

Based on the current technical indicators and market conditions, FET may see its price drop further in the coming days. If the selling pressure persists, the token could fall to the $1.24 level. If the market continues to weaken, the next support zone could be around $1.13. This would represent a significant further decline from its current price of $1.30.

However, it’s important to note that if the market conditions change and buying pressure picks up, FET’s price could rebound. Should the bulls step in and accumulate the token in large volumes, it’s possible that FET could rise to the $1.74 level. The key factor will be whether buying interest returns to the market and overcomes the current bearish sentiment.

What’s Driving the Decline: Profit-Taking or Broader Market Trends?

While the decline in FET’s price is partly attributed to profit-taking from holders, it’s also reflective of broader market trends. The cryptocurrency market has experienced significant volatility in recent weeks, with many altcoins seeing large price swings. As market conditions shift, some investors may have opted to take profits after FET’s recent gains, leading to the current sell-off.

Additionally, broader market corrections, such as fluctuations in Bitcoin’s price or changes in investor sentiment, can have a cascading effect on altcoins like FET. When the overall market experiences a downturn, altcoins are often hit hardest, and FET is no exception.

Looking Ahead: Can FET Recover?

The future of FET largely depends on whether the selling pressure subsides and buying momentum returns. For FET to reverse its current downward trajectory, the market will need to see stronger demand from investors, which could be triggered by positive news, technical support, or broader market trends.

Moreover, if FET’s price manages to break above key resistance levels, such as the 20 EMA and 50 EMA, it could signal the beginning of a price recovery. However, unless buying interest picks up, FET is likely to continue its struggle in the near term.

Conclusion: A Critical Juncture for FET

In summary, FET’s 18% decline has placed it among the top losers in the cryptocurrency market, and several technical indicators suggest that the token may face further price drops. Decreasing Coin Holding Time, a drop in profitability for holders, and falling below key Exponential Moving Averages all point to increased selling pressure.

While there is potential for a rebound if buying interest returns, the current market sentiment and technical indicators paint a cautious picture for FET. Investors should closely monitor the situation, as further declines to $1.24 or even $1.13 could be on the horizon unless stronger buying support emerges in the near future.