Fetch.ai Price Forecast: FET unlikely to recover, more downside possible
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $479.76 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- Fetch.ai price shows signs of exhaustion as it hovers around $2.223.
- A break of the bullish market structure suggests a potential pullback.
- On-chain metrics investors are not interested in FET at the current price levels.
Fetch.ai (FET) price performance in the first quarter was nothing short of magical. The market value of FET rose by 587% between February 5 and March 28, a climb that is now facing exhaustion and could lead to further downside moves.
Read more: AI tokens could rally following growth in NVIDIA's stock
Fetch.ai price paints bearish outlook
Fetch.ai price set an all-time high (ATH) on March 28 at $3.489. In 16 days after this ATH, FET crashed nearly 55%, setting up a local bottom at $1.570. This sudden crash created a lower high and a lower low, signaling a break in the bullish market structure. Currently, FET hovers below the $2.583 to $2.425 resistance zone, where it has faced two rejections so far. Interestingly, the second retest of the aforementioned hurdle set up a lower low relative to the first one, indicating that the bullish momentum is further waning.
In the past week, Bitcoin saw a small uptick to $64,000, which caused many altcoins to climb higher. For example, Worldcoin – another AI-based token – saw a near 50% uptick. Fetch.ai price, however, failed to match WLD’s pace, further adding credence to the possibility of a breakdown.
A dip into the $1.700 to $1.805 demand zone is a conservative outlook for FET enthusiasts. If such a scenario occurs, it would be a good time to consider buying the AI-based altcoin.
This outlook would suggest that Fetch.ai price could crash 20% in the coming weeks.
FET/USDT 1-day chart
According to Santiment’s 7-day Market Value to Realized Value (MVRV) ratio for Fetch.ai price has touched the 13% mark and is currently hovering around 10%. This value of 10% is the average profit of investors who bought FET in the past week.
A higher positive value shows larger unrealized gains, which could be seen as a sell signal. The 13% level, as shown by the horizontal line in the 7-day MVRV chart, can be viewed as a sell zone, considering that FET faced a sell-off and local top formations in the recent past.
FET 30-day MVRV
Furthermore, Santiment’s Network Growth indicator shows new addresses being created on the Fetch.ai blockchain. If this index sees an uptick, it would denote capital inflows, suggesting that investors are interested in FET at the current price levels.
Considering that the Network Growth indicator has been on the slump in the past few weeks adds more value to the potential correction thesis outlined above.
FET Network Growth
All in all, the outlook for FET looks bearish from both technical and on-chain perspective and could trigger a short-term double-digit correction. But for things to improve and Fetch.ai price to climb, it needs to overcome the $2.583 to $2.425 resistance zone and flip it into a support area. If FET manages to sustain above and market conditions turn bullish, FET could climb 35% and contest the ATH of $3.489.
Also read: FET suffers 2% decline as whales deposit Fetch.AI tokens to exchanges
- Fetch.ai price shows signs of exhaustion as it hovers around $2.223.
- A break of the bullish market structure suggests a potential pullback.
- On-chain metrics investors are not interested in FET at the current price levels.
Fetch.ai (FET) price performance in the first quarter was nothing short of magical. The market value of FET rose by 587% between February 5 and March 28, a climb that is now facing exhaustion and could lead to further downside moves.
Read more: AI tokens could rally following growth in NVIDIA's stock
Fetch.ai price paints bearish outlook
Fetch.ai price set an all-time high (ATH) on March 28 at $3.489. In 16 days after this ATH, FET crashed nearly 55%, setting up a local bottom at $1.570. This sudden crash created a lower high and a lower low, signaling a break in the bullish market structure. Currently, FET hovers below the $2.583 to $2.425 resistance zone, where it has faced two rejections so far. Interestingly, the second retest of the aforementioned hurdle set up a lower low relative to the first one, indicating that the bullish momentum is further waning.
In the past week, Bitcoin saw a small uptick to $64,000, which caused many altcoins to climb higher. For example, Worldcoin – another AI-based token – saw a near 50% uptick. Fetch.ai price, however, failed to match WLD’s pace, further adding credence to the possibility of a breakdown.
A dip into the $1.700 to $1.805 demand zone is a conservative outlook for FET enthusiasts. If such a scenario occurs, it would be a good time to consider buying the AI-based altcoin.
This outlook would suggest that Fetch.ai price could crash 20% in the coming weeks.
FET/USDT 1-day chart
According to Santiment’s 7-day Market Value to Realized Value (MVRV) ratio for Fetch.ai price has touched the 13% mark and is currently hovering around 10%. This value of 10% is the average profit of investors who bought FET in the past week.
A higher positive value shows larger unrealized gains, which could be seen as a sell signal. The 13% level, as shown by the horizontal line in the 7-day MVRV chart, can be viewed as a sell zone, considering that FET faced a sell-off and local top formations in the recent past.
FET 30-day MVRV
Furthermore, Santiment’s Network Growth indicator shows new addresses being created on the Fetch.ai blockchain. If this index sees an uptick, it would denote capital inflows, suggesting that investors are interested in FET at the current price levels.
Considering that the Network Growth indicator has been on the slump in the past few weeks adds more value to the potential correction thesis outlined above.
FET Network Growth
All in all, the outlook for FET looks bearish from both technical and on-chain perspective and could trigger a short-term double-digit correction. But for things to improve and Fetch.ai price to climb, it needs to overcome the $2.583 to $2.425 resistance zone and flip it into a support area. If FET manages to sustain above and market conditions turn bullish, FET could climb 35% and contest the ATH of $3.489.
Also read: FET suffers 2% decline as whales deposit Fetch.AI tokens to exchanges
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.