Fetch.ai (FET) price may be nearing the end of its massive uptrend that has seen it climb as much as 410%.
Several news aided the price action. On January 13th, Binance announced that it was Launching FET/USDT futures On Binance, with 20x leverage. and Bitru Exchange on 16 January also listed FET on its futures platform.
What’s behind the FET price rise?
FET price has risen sharply since 22nd November. The upward movement reached a high of $0.28 on January 17, representing an increase of 410% in 57 days. Fetch.ai price hit a key resistance area around $0.30, which is the 0.5 Fib retracement resistance level of the entire decline. Furthermore, it is a horizontal resistance zone, which adds to its importance. Therefore, a break above it could accelerate the rate of increase towards $0.50.
However, the daily RSI warns of an upcoming decline. This is because the indicator has generated bearish divergence (green line) inside the overbought zone. Substantial downward momentum often follows such divergence.
As a result, most likely the Fetch.ai price forecast will be a rejection followed by a drop from the resistance area.
Wave count warns of incoming drop
A closer look at the FET token price growth reveals that it is in the fifth and final wave of the upward movement (red). Hence, it could soon start a retracement. This aligns with RSI and price action readings from the daily time frame.
Wave five has already extended 2.61 times the length of waves one and three combined. As a result, it is likely to trade near its top, after which a significant retracement is expected.
While the exact values depend on where the FET tops out, the closest support levels are likely at $0.19 and $0.17, formed by the 0.382 and 0.5 Fib retracement support levels, respectively.
As mentioned earlier, a daily close above the $0.30 resistance area would mean that the trend remains bullish and will move further.
To conclude, despite the positive Fetch.ai news, the most likely price outlook is the rejection at the $0.30 level followed by a decline towards $0.19 and $0.17. A daily close above $0.30 would invalidate this bearish outlook.
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