FET (Artificial Superintelligence Alliance) has experienced an impressive bullish rally in recent weeks, posting gains of between 12% and 16% across various timeframes. However, signs suggest that this upward momentum may be starting to lose steam. As resistance levels tighten and selling pressure increases, the future of FET’s rally is now uncertain.

Despite the promising surge, the market sentiment around FET is showing mixed signals. Analysts are closely monitoring key levels that could determine whether the asset can break through resistance and continue climbing or if it will face a period of consolidation or decline.

Key Challenge: Resistance Levels Emerge

According to analyst Crypto Leo, FET is currently trading within a symmetrical triangle pattern on the weekly chart. This formation, often seen before a breakout, is defined by price movements that are contained within converging support and resistance lines. Typically, a breakout from this pattern leads to significant price movement.

However, FET’s rally may face delays due to resistance levels that have developed within the triangle pattern. These levels are known to carry substantial selling pressure, which could push the price lower and disrupt the bullish trend. For FET to continue its ascent, it must break above this resistance. If it manages to do so, the price could potentially rise to $3.50, as indicated by the chart’s projections.

Rising Sell-Offs and Liquidations Add Pressure

In addition to resistance, FET is experiencing growing selling activity among traders. Data from Coinglass shows that $4.34 million worth of FET has been transferred to exchanges over the past 24 hours, signaling a wave of liquidation as holders move their assets off the market. If this selling trend continues, it could weigh heavily on FET’s price and prevent further gains.

Moreover, the market has seen a significant liquidation of long positions, with $820,490 worth of long positions being forcefully closed as the price action diverged from traders’ expectations. This increase in forced liquidations highlights the market’s volatility and suggests that FET’s price could struggle to maintain its upward momentum in the short term.

A Bullish Undertone: Open Interest Remains Strong

Despite the growing sell-offs, not all indicators are signaling weakness. Coinglass reports that FET’s Open Interest, which tracks the number of unsettled derivative contracts, has increased by 10.20%, reaching $154.86 million. This suggests that there is still a bullish undertone in the market, and if conditions align, FET could see further upward movement.

The rise in Open Interest indicates that traders are still holding on to their positions and are potentially positioning themselves for future gains. However, for the bullish sentiment to fully materialize, other factors, such as a breakout from the current resistance levels, must fall into place.

What’s Next for FET?

As it stands, FET is facing a delicate balance. On one hand, the symmetrical triangle pattern indicates that a breakout is possible if it can overcome resistance. On the other hand, growing sell-offs and liquidations are pressuring the price lower, which could delay or even halt the rally altogether.

For FET to continue its bullish trend, it will need to break through the key resistance levels and maintain upward momentum. If the selling pressure subsides and the market sentiment shifts back to bullish, FET could push toward its $3.50 target. However, until these conditions are met, the asset may remain in a consolidation phase or even experience a slight pullback.

Conclusion: Cautious Optimism for FET

While FET has shown impressive gains, its current rally faces significant hurdles. Resistance levels and rising sell-off activity are putting pressure on the asset, making it difficult for FET to maintain its upward trajectory. However, the increase in Open Interest suggests that there is still potential for growth if the market conditions align.

Traders and investors should remain cautious as they monitor the key resistance levels and watch for signs of further selling activity. If FET can break through the resistance and overcome the current bearish pressure, it may have a chance to reach new highs. For now, though, the rally appears to be slowing, and the next moves will depend on how the market reacts in the coming days.