Fetch [FET] hits the obstacle at 61.8% Fib level – Are more gains unlikely?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- FET hit a key price rejection level
- Bulls can be hopeful because of rising Mean Coin Age and favorable sentiment
Fetch [FET] oscillated around $0.371 – $0.490 over the last few days before breaking below the range. However, bulls found steady ground at $0.298 on March 12, pushing the price back into its previous range only to face rejection at the range’s upper boundary.
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At press time, the AI-focused token’s value was $0.4310, down 10% in the last 24 hours. However, FET could benefit from a renewed AI narrative.
OpenAI released its latest and advanced ChatGPT-4 as a Google-backed Anthropic also rolled out a “safer” rival AI chatbot called Claude. This marked a renewal of the AI-wars that could boost AI-focused tokens like Fetch [FET], as seen in the past trend.
Will the price ceiling at 61.8% Fib level hold any longer?
After price rejection at $0.61, FET retraced and entered a consolidation range (white, dotted), but broke below it. The drop was checked by the $0.23-support, thrusting FET into a strong recovery. The 61.8% Fib level hurdle could be cleared as AI narrative floods socials in the next few hours.
Therefore, FET could surge to the bearish order block and 78.6% Fib level of $0.5423 or to overhead resistance at $0.6089 if it closes above the 50% Fib level ($0.4533). Such a move could offer two possible trades.
First, a risky approach targeting the 78.6% Fib level ($0.5423). The entry will be above $0.4533 with a stop loss at 23.6% Fib level ($0.3711). The second option is a $0.6089-target with similar entry and stop loss levels. Each will offer an RR of 1:2.5 and 1:4, respectively.
On the other hand, a close below 23.6% Fib level (($0.3711) would invalidate the bullish thesis. If the previous support holds again, the drop could offer new buying opportunities at $0.30. Short-sellers can short the asset if it closes below $0.3711 and repurchases it cheaply at $0.30.
The RSI (Relative Strength Index) rose, but was slightly above equilibrium, showing buying pressure reduced significantly. However, rising OBV (On Balance Volume) could boost further uptrend.
Read Fetch’s [FET] Price Prediction 2023-24
FET saw rising Mean Coin Age and greater positive sentiment
FET recorded a rising 90-day Mean Coin Age, indicating a wide-network accumulation – A potential rally signal. Similarly, the weighted sentiment exhibited a highly positive elevation, showing investors were bullish on the token.
Worth noting that the spike in supply on exchanges is a sign of short-term selling pressure. This, however, is unlikely to undermine a long-term recovery.