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The price of Artificial Superintelligence Alliance’s native token, FET, has reached a critical point as it repeatedly fails to break through the $0.90 resistance level. After weeks of upward movement and optimistic sentiment, momentum has begun to fade, prompting many traders to consider the likelihood of a short-term pullback.
Over the past month, FET has shown signs of strength on the higher timeframes. The token has steadily formed higher highs and higher lows since mid-April, a classic indication of a bullish market structure. Accompanying this trend was a noticeable increase in trading volume, suggesting growing interest and demand. However, recent developments on the charts have introduced a layer of caution.
The main obstacle facing FET is the strong resistance band between $0.90 and $1. This area has consistently rejected the token’s upward attempts, halting further gains and creating doubts among bullish traders. Each time FET approaches this zone, selling pressure increases, preventing a clean breakout. As a result, momentum indicators such as the Relative Strength Index (RSI) have started to decline, reflecting fading bullish strength.
On shorter timeframes, such as the 4-hour chart, FET has settled into a tight trading range. Prices are currently fluctuating between $0.805 and $0.94. This kind of price action is typical of a market that is consolidating after a strong move. It suggests that both buyers and sellers are in a temporary state of balance. However, consolidation patterns often precede sharp moves once that balance is disrupted.
What makes this situation particularly precarious is the emerging evidence of a liquidity build-up just below the $0.80 support level. According to data from Coinglass, a concentration of liquidation levels sits right beneath this price point. In simpler terms, many traders have open leveraged positions that could be forcibly closed if FET dips below $0.80. These types of liquidity zones are often targeted by institutional traders or automated systems aiming to trigger stop-losses and take advantage of the resulting volatility.
This setup makes a drop toward the $0.76 to $0.80 range increasingly likely, especially if trading volumes remain low and momentum continues to wane. A move to the downside could easily erase about 7% of FET’s current value, aligning with technical predictions based on recent price patterns and market behavior.
In contrast, there is a smaller area of liquidity near $0.89, indicating that the price might briefly move upward to collect liquidity before heading down. Such a move would not be unusual and could potentially mislead traders into thinking a breakout is happening, only for the market to reverse shortly after.
Adding to this cautious outlook is Bitcoin’s current positioning. The broader cryptocurrency market remains heavily influenced by Bitcoin’s movements, and BTC is currently hovering around the $109,000 to $110,000 range. If Bitcoin faces a pullback from this level, it could cause widespread selling pressure across the altcoin space, dragging FET down with it. In past cycles, similar behavior has been observed where altcoins follow Bitcoin’s lead, especially during periods of uncertainty.
Still, not all hope is lost for FET bulls. If the token manages to hold above the $0.80 support level and gains renewed buying interest, there remains a slim chance of a push toward the $1 mark. However, such a move would require a significant uptick in volume and a shift in broader market sentiment—both of which seem lacking at the moment.
In summary, while FET has shown a solid bullish foundation in recent weeks, its inability to overcome key resistance at $0.90, combined with rising bearish indicators and looming liquidity risks, points toward a potential correction. Traders would be wise to stay alert and consider reducing risk exposure as the market approaches this critical juncture. Watching Bitcoin’s performance and monitoring volume spikes will be key in anticipating FET’s next major move.
