FET price stalls at $0.9 – Should traders brace for a 7% dip now?
FET bulls should prepare for another retest of the $0.8 support zone.
- FET has a bullish structure on the higher timeframes.
- The short-term range could see a price dip to $0.81 or as deep as $0.76.
Artificial Superintelligence Alliance [FET] was unable to climb past the $0.9-$1 resistance zone. In a recent report, AMBCrypto highlighted the importance of the $0.75 support level.
Over the past couple of days, another support level at $0.81 has emerged as a key short-term level.
The potential for a range formation was also noted. A range had formed, and the next expectation of liquidity to be built up was underway. Traders can expect heightened volatility for the AI token in the coming days.
The implications of range and liquidity for FET traders
On the 12-hour chart, FET has a bullish outlook. It has made higher highs and higher lows since mid-April. Correspondingly, the OBV has also trended higher. Therefore, the rally was supported by increased demand.
The RSI has remained above neutral 50 for the most part, reflecting the bullish momentum of the AI token in recent weeks.
The drop in RSI in recent days was a result of the multiple rejections FET saw at the $0.9 threshold.
The 4-hour chart showed that this resistance was not yet overcome. A range formation between $0.805 and $0.94 had developed. The selling pressure while FET traded within this range was not high, as seen on the OBV.
The RSI has meandered around neutral 50, a sign of a lack of firm momentum. This came from the short-term range formation.
The liquidation heatmap showed a buildup of liquidation levels just below the $0.8 level, the lows of the current range. A small patch of liquidity was present at $0.89, and could be hunted in the short term.
A move southward appeared likely, especially in the case of a Bitcoin [BTC] drop from the $109k-$110k region. Hence, traders should be on the lookout for a retest of the $0.8 support zone.
Meanwhile, a move to $1 was also possible. It was unlikely, but a surge in volume could warn traders of a move to $1.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
