The price of FET has experienced notable fluctuations lately, partly due to evolving market sentiment after CUDOS became a member of the Artificial Superintelligence Alliance (ASI). However, this news has raised some concerns about FET’s price potential.
A primary concern is the rising involvement of short-term holders, whose actions may lead to increased volatility. As these investors jump into the market, FET could encounter difficulties in maintaining its upward trend.
Should FET Holders Be Concerned?
The growing share of short-term holders within the ASI network is becoming increasingly worrisome. These investors, who generally hold FET for less than a month, have increased their control to over 9% of the total circulating supply, up from 5.6% last month. While they are not yet the majority in the market, their rising numbers could pose risks for FET if they opt to lock in profits quickly.
Thus far, their actions have not led to significant bearish trends, but the collective behavior of these short-term holders could impact FET’s price. If the market changes and they decide to liquidate their holdings, it could put downward pressure on FET, causing a temporary dip in price before any further upward momentum occurs.
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Technically, the ASI token is demonstrating signs of gaining bullish momentum. The 50-day and 200-day exponential moving averages (EMAs) are nearing the formation of a Golden Cross, a bullish sign that could indicate the end of the Death Cross that has persisted since mid-July. This potential change could reignite market confidence in FET and establish a basis for further price appreciation.
The lingering Death Cross has kept market sentiment cautious in recent months, but a confirmed Golden Cross would suggest a shift, indicating a positive long-term outlook for FET and fostering a more bullish trend for the cryptocurrency.
FET Price Forecast: Targeting a Rally
Since CUDOS’ affiliation with the ASI, FET has experienced a 14% increase over the past week. Despite this rise, investor sentiment remains restrained, mirroring the overall bearish market atmosphere. Currently, FET is trading at $1.46, suggesting that while the news has enhanced its position, it hasn’t yet ignited a substantial rally.
The altcoin is holding above a three-week-old uptrend support line despite encountering resistance at $1.71. These mixed indicators, along with wider market dynamics, imply that FET may consolidate beneath this resistance while keeping support around $1.40. This period of consolidation could lend stability, allowing the altcoin to recover its momentum.
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If FET can break above the $1.71 resistance and convert it into support, it would create favorable conditions for a potential rally. In such a scenario, FET could rise to $1.95, representing a 33% increase. Surpassing this level could overturn the current bearish expectations, opening the way for the altcoin to reach the key psychological mark of $2.00.
Disclaimer
This price analysis article is intended for informational purposes only and should not be interpreted as financial or investment advice. BeInCrypto strives for accurate and unbiased reporting; however, market conditions can change without notice. To make informed financial decisions, always conduct your own research and consult with a professional advisor. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
