Examining FETs Recent Price Spike and OnChain Data Patterns
Fetch.ai’s native token, FET, has been making significant waves in the cryptocurrency market, with its price experiencing a notable increase of over 15% in the past week, bringing it to a trading price of $1.60 and a market capitalization exceeding $4 billion. This surge has brought FET to the edge of a crucial resistance level, which, if broken, could lead to a significant price movement pushing the token towards the $3 mark.
However, on-chain data tells a more complex story. Analysis of Santiment charts reveals an increase in selling pressure on FET, with the supply on exchanges rising and the supply outside of exchanges decreasing. This suggests that investors are moving their tokens to exchanges, potentially in preparation for selling. Additionally, there has been a spike in exchange inflows for FET, which often indicates a sell-off as investors liquidate their holdings.
These factors indicate some bearish sentiment in the short term, despite the recent price increase. The weighted sentiment around FET has dropped, signaling a rise in bearish sentiment among market participants. However, the social volume surrounding FET remains stable, indicating that the token continues to be popular and discussed within the crypto community.
Technical analysis of FET’s daily chart provides mixed signals as well. The Chaikin Money Flow (CMF) indicator shows a downtick, potentially indicating a forthcoming price correction. However, the Moving Average Convergence Divergence (MACD) indicator displays a bullish crossover, suggesting that buyers still have some control over the market.
Given the conflicting indicators and market dynamics, the future price movement of FET remains uncertain. If the bearish signals materialize, the token may experience a pullback to around the $1 level.
