Fetch.AI (FET) is making waves in the cryptocurrency space despite recent market turbulence, potentially gathering momentum for a rally.
At the time of writing, FET was trading at $1.26 with a 24-hour trading volume of $383.56 million.
Over the past week, the token experienced a 10% decline, mirroring broader market volatility.
However, FET's year-long performance tells a different story, with an impressive 198.8% surge reflecting growing interest in its role at the intersection of AI and blockchain.
Bullish Reversal Patterns Signal Potential Gains
Technical analysis from AMBCrypto has identified a bullish reversal pattern on Fetch.AI's daily chart, known as the inverse Head and Shoulders.
This pattern, often signaling the end of a downtrend, suggests potential upward momentum.
The $1.73 resistance level serves as a key neckline, and a breakout above this point could pave the way for significant gains, likely confirming a shift toward buyer control.
Volume analysis supports this outlook, showing notable spikes during the formation of the pattern's head and right shoulder.
These increases indicate strong buying interest, crucial for sustainable bullish movement.
However, analysts caution that a breakout with lower volume could suggest weaker market confidence.
The Chaikin Money Flow (CMF) Indicator, currently at -0.07, reflects mild selling pressure but hints at gradual accumulation.
A move into positive territory, coupled with a price breakout, would further validate strong buying momentum.
Fetch.AI's recent collaboration with the ASI Alliance has introduced an "Earn & Burn" mechanism, designed to reduce FET's token supply.
By implementing this deflationary strategy, the initiative aims to enhance token value by balancing rewards for users while controlling inflation.
The move is expected to create a more sustainable ecosystem, encouraging long-term holding and use of FET.
The announcement has generated optimism within the Fetch.AI community, with many viewing it as a precursor to further strategic developments. Such innovations could play a critical role in bolstering FET's market position.
Shifting Market Trends and Holder Behavior
The broader cryptocurrency market has shown signs of recovery, with Total Value Locked (TVL) steadily increasing in 2024 after stabilizing in 2023.
The renewed interest signals improving sentiment as capital flows back into blockchain projects.
Fetch.AI has benefitted from this trend, with long-term holders demonstrating confidence.
Addresses holding FET for over a year have remained steady, while mid-term holders have grown, indicating rising interest among newer investors.
In contrast, speculative activity has declined, as evidenced by fewer short-term traders.
In September, the Artificial Superintelligence Alliance (ASI), a collective formed by SingularityNET, Fetch.ai, and Ocean Protocol, announced the fourth member to join the group: distributed AI computing project CUDOS.
The post ‘Earn & Burn' Could Push FET and ASI Alliance to New Highs appeared first on Cryptonews.
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