- FET has recovered +80% since the lows of early August.
- Will the rally continue as more users book unrealized profits?
Alliance for Artificial Superintelligence (FET) was one of the best performing altcoins and AI tokens this week. The token ranked second among weekly gainers on CoinMarketCap, up nearly 60% over the last seven trading days.
From the August lows, FET is up +80% and has reclaimed crucial annual support above $1. Will FET speculators make further gains after reclaiming annual support?
FET Back Above $1 – What’s Next?
Source: FET/USDT, TradingView
On the daily chart, the annual support at $1.1, marked in cyan, has been convincingly reclaimed. This support mitigated the declines in June and July, but was cracked during the early August decline. The flip above the previous support was a bullish signal that FET’s rally could extend.
However, key technical indicators were entering overbought zones and could suggest that the limit of further gains could be limited for the bulls. Notably, the RSI (Relative Strength Index) was inches away from the overbought zone at the time of writing.
Additionally, the Stochastic RSI had reached overbought territory and suggested that a cooling could occur.
However, a firm move above $1.3 could extend the rally to the next target of $1.59 or $2.0. A cooling of the annual support could still offer re-entry points for the remaining bulls.
65% of users benefit
Source: IntoTheBlock
Read FET Price Prediction 2024-2025
According to data from IntoTheBlock (ITB), the +80% recovery from the August lows has allowed 60% of addresses to take profits. But an increase in users with unrealized profits could also prompt them to take small profits and trigger a recessionary move towards the FET rally.
Additionally, bets on the derivatives market also call for caution. According to Coinglass data, FET speculators were almost split on the altcoin’s next direction, with short and long bets almost equal.
The neutral sentiment in the futures market meant that FET could slow or extend its rally.
Source: Coinglass
Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and represents the opinion of the author only.
