FET recovery gains extend to +80%; will the bulls continue winning?
- FET has recovered +80% since early August lows. Will the rally extend as more users record unrealized profit?
Artificial Superintelligence Alliance (FET) was one of the best-performing altcoins and AI tokens this week. The token ranked second on weekly gainers on CoinMarketCap, up nearly 60% over the past seven trading days.
Based on the August lows, FET was up +80% and reclaimed crucial yearly support above $1. Will FET speculators net further gains after reclaiming the yearly support?
FET back above $1 – What’s the next target?
Source: FET/USDT, TradingView
On the daily chart, the yearly support at $1.1, marked by cyan, was convincingly reclaimed. This support eased the June and July dumps but was cracked during the early August dump. The swing above the previous support was a bullish cue that the FET’s rally could extend.
However, key technical indicators were entering overbought zones and could suggest that the limit for extra gains could be limited for bulls. Notably, the RSI (Relative Strength Index) was inches away from the overbought zone at the time of writing.
Additionally, the Stochastic RSI had hit overbought territory and suggested that a cool-off could happen.
However, a firm move above $1.3 could extend the rally to the next target of $1.59 or $2.0. A cool-off to the yearly support could still offer re-entry points for late bulls.
65% of users in profit
Source: IntoTheBlock
Read FET Price Prediction 2024- 2025
The +80% recovery rally from the August lows flipped 60% of addresses into profit, according to data from IntoTheBlock (ITB). But an increase in users with unrealized profit could also tip them to take small profits and trigger a coo off to the FET rally.
Additionally, bets on the derivatives market also called for caution. According to Coinglass data, FET speculators were almost split on the next direction for the altcoin, with nearly equal short and long bets.
The neutral sentiment in the futures market meant that FET could cool off or extend its rally.
Source: Coinglass
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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