Will FET break the key SMA level, and will shorts push down the price?

The price of Fetch.ai (FET) has fallen below its key 100-day Simple Moving Average (SMA), causing concerns about the possibility of further decline to the next support level of $1. This breakthrough marks a critical moment for the asset, opening the door for the formation of negative pressure. As FET enters this crucial stage, market participants are closely following whether it can recover above the SMA, otherwise they will face the risk of further decline.

FET has fallen below the 100-day moving average on the 4-hour chart, indicating that the downward momentum has weakened as the price approaches the support level near $1. Breaking below this level indicates weakened buying interest and shorts controlling the market. Maintaining the $1 level could trigger a reversal, while breaking below it could lead to further decline to lower support levels.

In addition, the 4-hour Relative Strength Index (RSI) has fallen below the key 50% level, currently at 44%, indicating that as FET strives to regain pump momentum, bearish sentiment is shifting, and dumping pressure continues to increase. With RSI below 50%, sellers are in control, and if RSI fails to recover above this threshold, the bearish trend may persist. Traders should watch for any signs of reversal or whether prices continue to be under pressure, which could lead to further declines.

On the daily chart, FET shows strong bearish momentum, highlighted by the bearish candlestick pattern, which has pushed the price below the 100-day moving average. This pattern suggests that sellers have firm control over the market, continuously pushing the price lower and increasing the likelihood of further decline in the short term.

Finally, the 1-day RSI analysis suggests that FET may face further decline as it is still below the 50% threshold, reflecting a continued bearish trend. With the dumping pressure likely dominating, the possibility of further decline is high. Rebound above 50% may signal a potential reversal, but FET is still struggling to regain pump momentum at the moment.

To grasp the risks and opportunities in FET price movement, it is necessary to carefully evaluate key technical indicators and market sentiment. As the trading price of FET falls below its 100-day SMA and the 4-hour RSI falls below the 50% threshold, the falling momentum is strengthening, which may indicate more downside space towards the support zone around 1 US dollar.

However, if the asset successfully holds the key support level or faces buying pressure to rise again, pushing the RSI back above 50% and reclaiming the 100-day SMA, there may be an opportunity for a reversal. At the same time, this could pave the way for a potential pump to the $1.8 resistance level.


(Data Source: Godspower Owie)