FET eyes $1.60 after breaking 266-day downtrend – Could this happen?

• FET ended its long-term downtrend and was a better excessive above $1.60.
• Liquidation clusters of $1.50-$1.60 indicated leverage-induced volatility.

Alliance for Synthetic Tremendous Intelligence [FET] has lately damaged a 266-day downtrend, signaling a possible pattern reversal. The token’s worth has risen 7.88% over the previous week, with a market cap of $3.46 billion.

Nonetheless, analysts warned that the FET confronted important resistance on the $1.60 stage.

Failure to exceed this threshold can result in double backside formation, particularly if Bitcoin [BTC] experiences a correction in the direction of $80,000.

Decrease timeframe evaluation

After a protracted downtrend of 266 days, FET has lastly damaged out and moved above falling trendline resistance with important quantity, indicating sturdy purchaser curiosity.

Buying and selling at $1.42 on the time of writing, the breakout marks a giant transfer ahead, however the worth is now going through sturdy resistance within the $1.60-$1.65 zone.

Making a better excessive with an in depth above this stage is essential to verify a sustained uptrend and open the trail to the $2.20-$2.50 vary over the subsequent few months.

Supply: TradingView

Nonetheless, till the FET clears this resistance, there stays the potential of a Double Backside formation, which could possibly be brought on by a market pullback, which might wipe out leveraged positions.

Failure to interrupt by way of $1.60 might result in a pullback to $1.20 and even $0.72, the place sturdy help lies.

The approaching weeks shall be vital in figuring out whether or not the FET continues its bullish momentum or consolidates at decrease ranges.

Wanting on the 4-hour chart, the worth returns to the preliminary accumulation vary round $1.36, the place patrons beforehand gathered and pushed the worth greater.

Supply: TradingView

A return to this stage will give merchants the chance to hitch good cash and doubtlessly experience the wave once more.

If the worth efficiently recovers from USD 1.36 and momentum shifts, USD 1.645 is the subsequent main resistance stage to observe.

Indicators such because the MACD, which exhibits weakening bullish momentum with a possible bearish crossover, and the Superior Oscillator (AO), which displays declining optimistic momentum, level to a short-term pullback.

FET exhibits sturdy community development

There was a big improve in exercise for Fetch.ai, with each day lively addresses (inexperienced) reaching over 2,400 throughout latest peaks, whereas new addresses (blue) climbed above 1,200, indicating rising person engagement.

Zero-balance addresses (orange) have additionally risen constantly, indicating an inflow of recent customers making ready to have interaction with the community.

Over the previous seven days, new addresses are up 3.35% and lively addresses are up 1.02%, additional highlighting rising adoption.

Nonetheless, the variety of zero-balance addresses fell by 2.25%, reflecting the transition of some accounts to lively use.

Supply: IntoTheBlock

This exercise is intently linked to cost actions, because the latest peak of $1.70 coincided with spikes in each new and lively addresses.

The constant improve within the variety of lively addresses underlines continued adoption, whereas the decline within the variety of zero-balance addresses alerts a shift from speculative curiosity to precise utility and transactions.

On the upside, important lengthy liquidations are beginning to accumulate above $1.50, peaking round $1.60, indicating elevated danger of overleveraged lengthy positions within the occasion of a retracement.

Conversely, brief liquidations focus under $1.40, with depth rising as the worth approaches $1.30.

Supply: Coinglass

Learn Synthetic Tremendous Intelligence Alliances [FET] Value prediction 2024 – 2025

This implies {that a} worth drop under $1.40 might result in successive liquidations of brief positions.

The chart confirmed excessive ranges of leverage exercise, which might result in volatility spikes as the worth strikes towards liquidation-heavy zones.