- Fibonacci levels suggested the next resistance level may be near $1.335, where sellers may test the rally
- Improving market health across the board could possibly facilitate an uptick for FET
Fetch.AI (FET) has grabbed the attention of market traders with its bullish momentum, breaking through key resistance levels and signaling a potential for further gains. Following a consolidation phase near $1.290, the altcoin’s price surged past the $1.315 resistance level, maintaining its upward trajectory.
This move seemed to be supported by favorable technical patterns and growing market optimism. At the time of writing, the crypto was eyeing $1.335, with strong buying pressure reinforcing its bullish trend.
Fibonacci levels and breakout
The analysis highlighted a clear breakout above the $1.290 consolidation zone, supported by the Fibonacci retracement levels.
The price held steady at the 61.8% Fibonacci retracement ($1.239), often referred to as the “golden ratio” which acted as a robust support level during the pullback. After consolidating within this range, the price moved north, breaking the resistance at $1.290 and surpassing $1.315.
Source: TradingView
Also, the Fibonacci levels suggested the next resistance level may be near $1.335, where sellers may test the rally. If FET sustains its momentum above $1.315, the bullish trend is likely to persist. The relative strength of the breakout, coupled with consistent volume, can be seen as a sign of growing trader confidence.
Furthermore, this upward trend seemed to be reinforced by the ascending support line drawn from $1.143. It highlighted the growing demand for FET. If this trendline holds, it can serve as a springboard for the price to target $1.35 or higher levels in the coming sessions.
However, failure to hold above $1.315 could lead to a retest of the $1.290 consolidation zone.
An analysis of the Relative Strength Index
The Relative Strength Index revealed that FET’s current breakout remains in bullish territory, without being overbought just yet.
At the time of writing, the RSI was hovering at around 55–60 – A sign of growing upward momentum while still leaving room for additional gains. This level indicated that the asset is gaining strength, but has not yet reached the critical overbought threshold of 70.
Source: TradingView
A hike towards overbought levels may coincide with profit-taking or consolidation, while maintaining the RSI below 70 could support further upward momentum.
On the contrary, if the RSI retraces sharply, it may indicate waning buying pressure, potentially leading to a retest of the $1.290 support zone.
If the steady RSI and robust market sentiment hold firm, FET may be well-positioned for sustained bullish performances in the short term.
What about the market sentiment?
The Fear and Greed Index has seen a moderate uptick in optimism lately. Flashing signs of “Greed” at press time, the index’s finding suggested that market participants are increasingly confident about bullish price movements.
This seemed to be in line with FET’s breakout from consolidation, as the surge above $1.315 coincided with heightened risk-taking behavior in the market.
Source: TradingView
Growing greed among traders often drives short-term price surges as more buyers enter the market, pushing the price higher.
However, it’s worth noting that extreme greed could indicate a potentially overbought condition, which might lead to a correction. For FET, sustained bullish momentum would require market sentiment to not hit extreme levels, while also allowing room for further gains towards $1.35 or beyond.
Broader market’s analysis
The sector’s cumulative market cap has risen by over 2% in the last 24 hours, with the same crossing the critical level of $3.2 trillion. Such growth alludes to the hike in capital inflows into the crypto market. It is also a sign of greater investor interest and confidence in digital assets, including FET.
When total market cap strengthens, it generally boosts liquidity and trading volumes across assets, enabling breakout opportunities like the one observed with FET.
If the total market cap continues to rise, FET’s price could target $1.35 and potentially extend its gains beyond $1.40 in the coming sessions.
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