Home Altcoins News FET Price Drops 20% in a Week Amid AI Crypto Sell-off

FET Price Drops 20% in a Week Amid AI Crypto Sell-off

FET Price

The price of Fetch.ai (FET) has recently experienced a sharp decline, dropping over 40% in the past month and another 20% in the last week. This significant downturn follows a broader trend of weakness among artificial intelligence (AI) tokens, which have faced selling pressure as the market sentiment turned increasingly bearish. FET’s price correction highlights the uncertainty and volatility within the crypto market, especially for tokens related to emerging technologies like AI.

The decline in FET’s value can be attributed to a combination of technical factors and whale activity in the market. One of the most notable signals of market weakness is the mixed behavior of large investors, or “whales.” Over the past few weeks, there has been a shift in whale activity, with mid-sized holders (those holding between 100,000 and 1,000,000 FET) reducing their positions, while larger holders (those holding between 1,000,000 and 10,000,000 FET) have increased their holdings. This dual action suggests a potential shift in market dynamics, where smaller investors are selling off their assets, and larger investors are accumulating more FET, possibly betting on the token’s long-term value.

Tracking whale activity is crucial in understanding the price trend of FET, as their large positions can significantly impact the market. The recent mixed signals from whales have led to increased uncertainty about whether the market is nearing a bottom or if the selling pressure will continue to push FET lower. Despite the decline, the market is still uncertain about the future of FET, as larger investors could be positioning themselves for a potential rebound, while mid-sized holders seem to be moving away from the asset.

Further analysis of the FET market shows a strengthening bearish trend. The Directional Movement Index (DMI) for FET has risen sharply, indicating that the current downtrend is becoming stronger. The DMI is currently at 49.4, nearly double from two days ago, signaling that the strength of the ongoing bearish trend is intensifying. The +DI, which measures the strength of buyers, has fallen from 14.5 to 5.7, while the -DI, which tracks sellers, has surged from 19.6 to 37.3, reinforcing the notion that sellers are firmly in control. Unless the +DI begins to rise, indicating a reversal of momentum, FET could continue its downward trajectory.

The price of FET is currently facing strong support levels, with key areas to watch being $0.69 and $0.59. A breakdown below these support levels could lead to a further price decline, potentially pushing FET below $0.50 for the first time since December 2023. Such a drop would be significant, as it would mark a new low for the token, potentially affecting its standing in the AI crypto market. However, the situation is not entirely bleak for FET, as the price could still see a recovery if the momentum shifts.

If the selling pressure eases and momentum reverses, FET could test resistance levels at $0.94, with the potential for a breakout above this level. A successful breakout could see the price target $1.11 and potentially as high as $1.34, bringing it back to levels seen earlier in 2024. However, the market remains highly uncertain, and without a shift in sentiment, FET may struggle to break free from its current downtrend.

In conclusion, FET’s recent price drop highlights the broader bearish sentiment in the AI crypto market, driven by selling pressure and uncertainty among traders. While whale activity is mixed, technical indicators point to continued downside risks for the token, with support levels at $0.69 and $0.59 becoming critical for the future direction of the price. Traders and investors will need to closely monitor market conditions and whale movements to gauge whether a recovery is possible or if further declines are on the horizon.

Read more about:
Share on

Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.

Get the latest updates from our Telegram channel.

Telegram Icon Join Now ×