FET, the token associated with the Artificial Superintelligence Alliance, has remained stable around the $0.8 mark in recent days, despite fluctuations in the broader market. However, the current price consolidation could signal an upcoming shift. Traders should stay vigilant as there is the potential for a breakout in the near future, but also the possibility of a short-term dip.

The AI-focused cryptocurrency, with a market cap of around $2 billion, has been experiencing sideways price movement for nearly two weeks. This stagnation mirrors broader trends in the altcoin market, which has been lacking significant momentum. However, Bitcoin’s recent breakout, potentially reaching all-time highs, could act as a catalyst for the broader crypto market, including FET.

A closer look at FET’s 1-day chart reveals some interesting patterns. Recently, FET experienced a retracement after a bearish divergence was observed on the Money Flow Index (MFI). Following this divergence, FET’s price fell from $0.9 on May 10 to $0.7 within the span of nine days. This pullback, however, was a retest of a crucial horizontal level.

The key support level for FET has been identified at $0.75, as indicated by the Fixed Range Volume Profile, plotted from late January. This level aligns with a lower high set in early March, suggesting it is an important point in FET’s price structure. After dipping below this level in early May, FET managed to reclaim the $0.75 zone and held it as support for the last three weeks. This is a strong indicator that the support at $0.75 is now solidified, and the token is unlikely to fall below this mark in the immediate future.

The MFI indicator currently rests near the neutral 50 level, indicating that there is plenty of room for price expansion in either direction. Given this, FET’s price may be more likely to move higher than to experience a deeper retracement. Furthermore, the On-Balance Volume (OBV), which measures buying and selling pressure, has been on an upward trend for the past two months. Although the momentum slowed in May, the OBV has not made lower lows, suggesting that demand for FET remains strong, supporting the potential for a price increase.

Looking at a potential short-term range, the 1-week liquidation heatmap offers additional insights. A significant liquidity cluster has formed around the $0.81 level in the past five days. This level was swept, followed by a slight dip to $0.77. This behavior suggests that liquidity hunting is occurring, where traders with certain positions are being liquidated. Additionally, the next potential liquidity pocket lies between $0.83 and $0.855.

To the downside, another pocket of liquidity is positioned around the $0.76 mark, just below the local lows. This implies that FET could form a price range between $0.77 and $0.81, as the market hunts for liquidity in both directions. This range-bound consolidation could be a precursor to a significant price move once the liquidity levels are fully absorbed, potentially leading to a breakout or a sharp price impulse.

Despite the short-term fluctuations, FET’s long-term outlook remains optimistic, driven by the strength of its support levels and the overall growth in the AI and DeFi sectors. Traders should monitor the liquidity zones carefully to identify opportunities for profit as FET navigates through this consolidation phase. If the token manages to break above the $0.81-$0.83 range, it could signal a potential rally towards higher levels. Conversely, if the price dips below $0.76, further downside correction could occur before the next major price move.

In conclusion, while FET’s price has been holding firm around $0.8, the cryptocurrency is currently in a consolidation phase. Whether it will break out in the short term depends on the resolution of liquidity levels and broader market factors. Traders should remain alert to the potential for a breakout or dip, as FET’s price is likely to experience significant movement once the consolidation phase ends.