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FET price has been facing a strong downturn for the last three months losing nearly 62% of its value. Despite the recent recovery in the broader markets, FET failed to make a comeback.
Moreover, the last three months have been very challenging for the AI sector and especially FET. FET recorded a robust 300% rise intermonth from mid February to Mid March.
However, the price could not follow through and a selloff was observed on the charts. The selloff continued till date with some small gains in the short term. Let’s analyze whether FET will slump more or head for recovery.
Social Metrics Highlights an Increased User Engagement
Fetch.ai, Ocean Protocol, and SingularityNET have merged their tokens to form the Artificial Superintelligence Alliance, now trading under the FET token. This new alliance is poised to be a significant player in AI research and development.
The recent sessions have shown notable improvements in on-chain metrics such as social volume and social dominance, suggesting a potential price increase. Moreover, data from app.santiment.net indicates a rising trend in these metrics, which could positively impact the price in upcoming sessions.
The social dominance and social volume metrics represent the change in awareness and popularity of the crypto among users. Social media platforms like Twitter, Instagram, and Facebook are instrumental in spreading its reach and increasing its user base.
FET Price Technical Analysis
The trend outlook highlights a bearish trend prevailing in Artificial Superintelligence Alliance in the long term as well as short term. FET is looking for a firm footing near the $0.75 level which is the psychological level and a previous breakout zone.
The daily chart highlights the formation of a declining parallel channel pattern with the price currently nearing the lower boundary. As of now, the $0.75 level is crucial and may decide the next movement.
A breakdown below it may indicate a bearish continuation. On the other hand, a bounce above it may reestablish investor confidence. It could even trigger a rise towards the upper boundary of the channel close to $1.5 level.
At the time of writing, FET price was hovering below the key exponential moving averages, indicating weakness. The technical indicators imply a bearish outlook on a combined analysis.
Will FET Price Continue Slumping or will it Recover?
FET declined 62% over the past three months indicating weakness over the chart. The improvements in on-chain metrics like social volume and dominance suggest potential price increases.
However, the trend outlook remains bearish, with FET seeking support near the $0.75 level. The daily chart shows a declining parallel channel, with $0.75 being crucial for future movement. A breakdown could continue the bearish trend, while a bounce back might trigger a rise towards $1.5. FET is below key exponential moving averages, indicating weakness.