Fetch.ai (FET) Price Falls After Rejection from Resistance
The price of Fetch.ai (FET) has experienced a decline after being rejected at the $27 resistance level on September 3. However, there has been a recent breakout from a shorter-term descending resistance trendline on September 28.
FET Approaches Ascending Support Trendline
Since June 2022, the FET price has been following an ascending support trendline. The line was validated on August 17 and 22, indicated by the green icons. These touches with long lower wicks suggest buying pressure.
The rate of increase accelerated after the final bounce, pushing the FET price to a high of $0.27 on September 3. Unfortunately, it failed to break out from the resistance area and began a downward movement that is still ongoing.
The daily RSI does not provide a clear trend indication. Traders use it as a momentum indicator to identify overbought or oversold conditions and make trading decisions. With mixed readings and rejection at 50 (red circle), the trend is undetermined.
FET Price Prediction: Will Price Retest $0.27?
The six-hour timeframe offers a more bullish outlook for FET. Firstly, there was a breakout from a shorter-term descending resistance trendline, which often leads to significant increases. The price reached the 0.382-0.5 Fib retracement resistance region at $0.23-$0.24.
According to the Fibonacci retracement levels theory, after a significant price change in one direction, the price is expected to partially return to a previous level before continuing in the same direction. To confirm a bullish movement, the FET price needs to close above this region.
Secondly, the six-hour RSI has found support at the 50 trendline (green icon), indicating a potential increase in the indicator and a breakthrough of the Fib resistance.
However, if the 0.382-0.5 Fib region is not cleared, there is a possibility of retesting the long-term ascending support line at $0.20, resulting in a 10% drop.
Hot Take: FET Price Faces Uncertain Future
The Fetch.ai (FET) price has experienced a rejection from the $27 resistance area and is currently in a downward movement. Despite a recent breakout from a shorter-term descending resistance trendline, the overall trend remains undetermined.
On the six-hour timeframe, there is a more bullish outlook with a breakout from a descending resistance trendline and potential support from the RSI. However, failure to clear the 0.382-0.5 Fib retracement region may lead to a retest of the long-term ascending support line at $0.20.
Traders should closely monitor these key levels to determine whether FET will retest $0.27 or experience further downside pressure.
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