The crypto-AI sector has seen exceptional performance recently.
Data from CoinMarketCap showed that the sector gained 16% in cumulative market capitalization over the past week. Some of the top tokens in this category have also seen massive gains.
The most notable of these were Bittensor (TAO) and Render (RENDER), which rose 54% and 42%, respectively, for the week. In comparison, the Artificial Superintelligence Alliance (FET) managed a respectable 35.8% rally.
In doing so, it has begun to alter its long-term trajectory in a bullish manner and is challenging a key resistance level. These gains could continue if the crypto-AI sector continues to outperform the market.
Assess the potential for a FET trend shift
From November to the end of January, the $0.195 level was a support level. It was breached and, at the time of writing, was being tested for strength. FET’s reaction to local resistance at $0.185 was encouraging.
Over the past couple of days, the bulls have struggled to find their way above. During the last few hours of trading, the selling pressure appears to have been exhausted. This left the way open for FET bulls to reclaim the $0.195 resistance.
The moving averages highlight the bearish momentum that has dominated until this week’s session. The CMF has crossed the zero line to show capital inflows to the FET market.
The growing demand can trigger a strong rally for the AI altcoin. However, traders should note that the FET swing structure remained bearish. The $0.185 breakout was just an internal move.
The $0.24 high precipitated the February low at $0.134, marking it as the highest high that bulls must overcome to change the long-term trend bullishly.
Near-Term FET Opportunity
The liquidation heatmap showed the area from $0.195 to $0.205 to be a local magnet zone. The $0.240 to $0.254 were the next liquidity cluster overheads.
In the coming days, if FET prices can reach $0.205 and stay there, it would be a good sign of a bullish continuation. On the other hand, a rapid rejection of liquidity cluster overhead would be a sign of seller dominance.
Traders would like to see price acceptance above $0.20 before looking to target the next move at $0.24, which is the daily chart high.
Final summary
- The crypto-AI sector has been very bullish over the past week, with a clear lead over other sectors.
- FET has been one of the strongest altcoins in the AI sector, and it could continue its upward trajectory this week as well.
