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Fetch.ai (FET) Faces Challenges: Why Another Rally Might Not Succeed


Fetch.ai (FET) price has been moving sideways and consolidating for over a month.

While signs of a change in price action direction seem apparent, the question is, will it be bullish or bearish?

Fetch.ai Investors Take a Step Back

Fetch.ai’s price is set to continue witnessing the consolidation it is stuck in. At times, the investors tend to shift the waves of price action, but this may not happen with FET right now. The reason is that investors are pulling back.

As visible in the network growth, a downtick indicates the project is noting a decline in the traction observed in the market. This is measured by the rate at which new addresses are formed on the network, which is at a two-month low presently.

Fetch.ai Network Growth.
Fetch.ai Network Growth. Source: Santiment

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Additionally, the active investors are refraining from participating in the network. The ones conducting transactions on the network are declining with every passing day. This means that the market’s pessimism is overshadowing the optimism.

Fetch.ai Active Addresses.
Fetch.ai Active Addresses. Source: Santiment

FET Price Prediction: Consolidation Continues

Fetch.ai’s price, trading at $2.54 at the time of writing, failed to breach the resistance marked at $2.85. This level has only been broken through once in the last 90 days. Given the declining support of investors, the situation will likely remain the same in the future.

The Relative Strength Index (RSI) is also currently below the neutral line at 50.0. RSI is a momentum oscillator that measures the speed and change of price movements. It indicates whether a security is overbought or oversold, aiding in identifying potential trend reversals.

FET/USDT 12-hour chart.
FET/USDT 12-hour chart. Source: TradingView

The presence of the indicator in the bearish zone is a sign that Fetch.ai’s price is finding difficulty in noting a recovery, leaving it vulnerable to consolidation.

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However, if FET falls through the $2.40 support level or breaks out above $2.85, it would potentially invalidate the neutral thesis, resulting in either a rally or a correction.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.


Conclusion

In conclusion, the Fetch.ai (FET) price has been stuck in a consolidation phase, with minimal signs of bullish or bearish momentum. The lack of investor participation and declining network growth indicate a lack of interest in the project, leading to a pessimistic market sentiment. The failure to breach key resistance levels and the presence of the Relative Strength Index (RSI) in the bearish zone suggest that Fetch.ai’s price may struggle to recover and remain vulnerable to consolidation. However, a breakthrough of support or resistance levels could potentially trigger a rally or correction in the future. Investors should closely monitor these levels to make informed decisions regarding their FET holdings.

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