FET’s price could drop by 20% to reach the $1.03 level as it fails to hold a crucial support level.
- FET’s Long/Short Ratio was at 0.90, indicating strong bearish market sentiment among traders. 53.2% of top traders held short positions, while 46.8% held long positions.
Amid the ongoing bearish market sentiment, Artificial Superintelligence Alliance Price Prediction [FET] is poised for a massive price decline as it failed to hold a crucial support level.
Similarly, major cryptocurrencies including Bitcoin [BTC], Ethereum [ETH] have been struggling, having experienced notable price declines over the past 24 hours.
Current price momentum
At press time, FET was trading near the $1.35 level, after a price decline of over 4.7% in the past 24 hours. During the same period, its trading volume dropped by 4.9% indicating lower participation from traders and investors.
FET recently breached crucial trendline support, a strong consolidation zone, and the 200 Exponential Moving Average (EMA) on a daily time frame.
It closed a daily candle below the consolidation zone, which confirmed this as a successful breakdown.
Source: TradingView
Based on the historical price momentum, there is a strong possibility that FET’s price could drop by 20% to reach the $1.03 level in the coming days.
Despite this bearish outlook, its Relative Strength Index (RSI) is in an oversold zone that suggests a potential price recovery.
However, this seems unlikely at the moment, due to the prevailing bearish market sentiment.
Bearish on-chain metrics
The altcoin’s negative outlook is further supported by on-chain metrics.
According to the on-chain analytics firm Coinglass, FET’s Long/Short Ratio was 0.90 at press time, indicating strong bearish market sentiment among traders.
Source: Coinglass
Additionally, its Futures Open Interest dropped by 6.7% over the past 24 hours and has been steadily falling, showing ongoing bearish market sentiment.
At press time, 53.2% of top traders held short positions, while 46.8% held long positions.
The major liquidation levels were at $1.30 on the lower side and $1.38 on the upper side, with traders over-leveraged at these levels, according to Coinglass data.
Source: Coinglass
If the market remains unchanged and FET’s price drops to $1.30, nearly $807,000 worth of long positions will be liquidated.
Conversely, if sentiment shifts and the price rises to $1.38, approximately $2.17 million worth of short positions will be liquidated.
This data shows that short sellers have been making significant bets on short positions over the past 24 hours.
By combining technical analysis with on-chain metrics, such as open interest and the Long/Short Ratio, it appears that bears are currently dominating the asset, with the potential to drive a massive price decline.
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