Fetch.ai (FET) Struggles to Break Free: A Closer Look at Stagnation and Future Prospects

2024-04-23, 09:19

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![](https://gimg2.gateimg.com/image/article/1692587449analysis.jpeg)
## [TL; DR]
FET crypto has been in a market consolidation since the beginning of the month.

The relative strength index (RSI) shows a neural reading since it is around 50.

<a href="/price/fetch-ai-fet" target="_blank" class="blog_inner_link">Fetch.ai</a> (FET) recorded a 15.8% price drop within 30 days.

## Introduction
When Satoshi Nakamoto, the [bitcoin founder](https://www.gate.io/learn/articles/who-is-satoshi-nakamoto/286 "bitcoin founder"), launched <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> no one expected that we could have different classes of cryptocurrencies.  Over the years altcoins appeared, with <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> being the leader in the category. Right now, there are various sub-classes of altcoins that include Artificial Intelligence (AI) cryptos and memecoins, among others.

Today, we discuss the performance of one of the emerging [AI cryptocurrency](https://www.gate.io/price/view/artificial-intelligence "AI cryptocurrency"), Fetch.ai (FET). We will focus on its current poor performance and the reasons behind that.  FET’s poor showing on the market comes after a period of AI crypto price surge during the first quarter of the year.

## Fetch.ai's month-long consolidation phase and the uncertainty in price action direction
The Fetch.ai (FET) crypto set a solid price movement in March leading the market to believe that it would become one of the best-performing assets in 2024. It is that early year price surge that led FET to attain its fresh new all-time high of $3.45 on 28 March. Unfortunately,the  ATH became its latest market top as the following graph shows.
![](https://gimg2.gateimg.com/image/article/17138635571.jpg)
FET Price Movement – Coingecko

The peak you note on <a href="/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a> was FET’s ATH, attained on 28 March. And as you observe, after the ATH there was a down trend which later turned into a range market that has continued deep into April.

Read also: [AI+Crypto Landscape Explained: 7 Major Tracks & Over 60 Projects ](https://www.gate.io/learn/articles/ai-crypto-landscape-explained-7-major-tracks-and-over-60-projects/2559 "AI+Crypto Landscape Explained: 7 Major Tracks & Over 60 Projects ")

The key reason for the FET price fall was profit taking on the part of the investors. Basically, many investors, especially whales, offloaded their holdings when the price hit its all-time high. For instance, after FET reached $3.45 on 28 March several FET crypto wallets sold over 9 million coins that translates to more than $24.3 million. As a result, within a short period after its ATH the amount of FET in whale wallets dropped below 60.8 million.

It is the disruption in the demand and supply balance that led to the fall of the FET crypto price as investor sentiment shifted from being bullish to bearish. Thus, FET has been in a market consolidation for about a month . At the time of writing, the FET crypto was trading at $2.24 after gaining 5% within the last 7 days and losing by 16.2% and 15.8% within 2 weeks and 30 days, respectively.

## Reasons behind investors pulling back: Decline in Network Growth and Active Addresses
The decline in FET network growth has been visible over the past few weeks. For example, there has been a decrease in the rate at which new addresses are being created which indicates a depressed market. The next graph shows a decrease in the number of new wallet addresses on the network.

Read also: [The Intersection of AI and Crypto](https://www.gate.io/learn/articles/the-intersection-of-ai-crypto-opportunities-and-challenges/2307 "The Intersection of AI and Crypto")
![](https://gimg2.gateimg.com/image/article/17138636282.jpg)
Fetch.ai Network Growth: Santiment

As observed above, the red line, which has been falling over the past few weeks, shows decline in its network growth. The FET market analysis also shows a decrease in the number of active investors. This shows that the number of individuals that conduct transactions on the network has been falling since the end of March. The next graph summarizes the change in the number of active investors [on the Fetch.ai network](https://www.gate.io/learn/articles/what-is-fetch-ai/645 "on the Fetch.ai network"). 
![](https://gimg2.gateimg.com/image/article/17138636973.jpg)
Fetch.ai Active Addresses: Santiment

As the above image shows, the number of people making transactions on the Fetch.ai network has been falling since March. This indicates dwindling Fetch investor <a href="/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a>.

## Relative Strength Index (RSI) Implications for Fetch.ai’s Short-Term Market Behavior
The current market analysis shows that FET is still bearish on higher time frame charts. We can easily notice that the cryptocurrency is struggling since it is failing to break above various key resistance levels. For instance, FET has failed to breach the $2.85 resistance level since the beginning of the price correction on 28 March. Worse still, it has only broken above this price resistance level once within the last 100 days.

The bearish momentum may continue to dominate the FET market until the major investors like crypto whales change their investment strategy. For example, the price may soar again if many retail investors adopt the buy the dip strategy. Once the bullish rally begins many other investors may join in.

Another sign of a possible continued bearish momentum has been the RSI reading which was just above its centre line indicating a neutral market condition. When the market is in a neutral state it means investor sentiment is neither bullish nor bearish. That situation deters much funds <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> into its market which may prolong the period of the range market. The following graph shows the RSI reading during mid-April.
![](https://gimg2.gateimg.com/image/article/17138637483.jpg)
FET/USDT Price Chart: TradingView

The above diagram shows that by mid-April the RSI reading was slightly below 50. A rise in the RSI figure may show that the FET price is rising towards the $2.85 resistance level. FET’s other key resistance levels are $2.24, $2.37 and $2.56. On the other hand its closest support levels are $ 1.932435, $ 1.745041 and $ 1.62093.

Nonetheless, it is essential to realize that the recent FET price drop and consolidation may be a precursor for a possible breakout. If the <a href="/price/fetch-ai-fet" target="_blank" class="blog_inner_link">Fetch.ai crypto</a> manages to break above the $2.37 resistance level it may retest the $2.46 mark before driving towards $2.56.

## Fetch.ai's market challenges and the critical factors for investors
There are several factors that may affect FET’s market performance. However, the fact that the altcoin has failed to meet the expectation of the market could be the reason for its low demand. For example, Fetch.ai has failed to show its artificial intelligence related products on the market. That lack of emphasis on AI might have led investors to question if Fetch.ai is ready to transform the artificial intelligence sector with its purported innovative products.

Secondly, Fetch.ai has failed to show much progress on its roadmap. In fact, there has not been much progress on its roadmap for a long period now. For example, the project has not yet launched its blockchain and decentralized exchange as it has envisioned. Furthermore, there has been limited adoption of its Fetch Wallet, a sign that the demand for its products is currently low on the market.

However, not all hope is lost as there has been a rise in its social dominance and social volume which may improve the investors’ trading insights pertaining to cryptocurrency. For context, social dominance rises if many people, especially investors, take time to discuss its development on social media platforms. An increase in its social volume, therefore, suggests that there are many investors who have high interest in the digital asset which may increase the cryptocurrency trading in the future.

## Conclusion
Fetch.ai crypto has been in a range market for close to a month now and there are no clear signs of a possible recovery. Key indicators like RSI show that FET is within a bearish period which may end if there is a strong change in investor sentiment. In the meantime, FET currently at $2.24 has declined by 15.8% within the last 30 days.

## FAQs about Fetch.ai
### Does Fetch.ai have a future?
Fetch has the potential to achieve higher growth and price value since it offers unique products in the artificial intelligence sector. However, it faces several serious risks including regulatory scrutiny and price volatility. If it maintains its current adoption rates it will become one of the best cryptocurrency on the market.
### Can Fetch.ai reach $10?
Fetch.ai may reach $10 within the near future considering that it is currently trading at $2.24 after gaining by 15.8% within the last 30 days. Some crypto analytical platforms predict the FET price to reach $10 by 2036.
### Can Fetch.ai reach $5?
Fetch.ai (FET) crypto has the potential to reach $5 in the next 5 to 10 years. Currently, trading at $2.24 FET may attain a price target of $5 between 2031 and 2036. The performance of the entire crypto sector and its adoption rate will determine when exactly the FET price will reach $5.
### Does Fetch.ai have a max supply?
Fetch.ai which is currently trading at $2.24 has a maximum supply of 1,152,997,575. Its current circulating supply and trading volume are 1,043,462,805 and $293,365,725 respectively.

<div class="blog-details-info">
<div>Author:**Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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