FET Price Rallies 25%, But Uptrend Faces Strong Bearish Pattern

The Artificial Superintelligence Alliance (FET) has shown signs of recovery in its price chart, recording a 25% increase this week. Although this upward movement may appear positive, hidden bearish signals indicate that the cryptocurrency might soon experience a substantial drop.

For investors, it’s worth noting the development of a significant bearish structure which might lead to potential losses for FET owners.

FET Investors Face Selling

In simpler terms, the DAA Divergence indicator is currently suggesting it’s time to sell FET. This is because while the price of FET is increasing, the activity within its network is decreasing, which can be a sign of trouble. Historically, such discrepancies between price and network activity have often resulted in corrections or even drops in price, potentially dampening investor enthusiasm.

It appears that the divergence indicates a potential temporary shift in positive feelings towards FET. With the price and on-chain activity seeming to be mismatched, it looks like a correction might happen soon. This pattern seems to be a common one where markets adjust when prices rise faster than the natural expansion of the network.

Analyzing FET’s overall trend using the Average Directional Index (ADX) provides a detailed perspective. At present, the ADI is below the neutral level, implying that the previous downward trend might be losing strength, potentially coming to an end. This situation hints that FET could be moving towards a more consistent phase.

It’s worth noting that if the ADX starts increasing once more, it suggests a resurgence in the upward trend. This pattern underscores the significance of consistent strength in propelling FET towards its upcoming resistance thresholds, bringing optimism for those investors expecting continued growth.

FET Price Prediction: Escaping The Pattern

The cost of FET could be about to create a bearish pattern known as a “head and shoulders,” which is typically a red flag indicating possible losses. If it falls below the $1.19 support point, this pattern might be confirmed, possibly leading to a substantial decrease.

Although the indicators show bearish trends, there are conflicting elements that hint FET may maintain its value above $1.40, although it might find difficulty surpassing $1.71. This level of support could potentially shield FET from additional declines, offering a measure of comfort to investors.

If FET manages to change its $1.71 resistance into a support level, it could potentially surge towards $1.95 and even reach $2.00. Such a move would contradict the bearish prediction and reinforce the upward trend, presenting an encouraging perspective for the altcoin’s future.

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2025-01-06 20:11