NOIDA (CoinChapter.com) — Cryptocurrency AI project Fetch.AI’s native token FET rose about 19% on March 7 to a record high near $2.86, paring some gains on profit booking.
Fetch.AI recorded its biggest daily gain in three years after the token surged more than 46% on March 6 as FET reached a new ATH. However, the token is now facing a bearish signal that could erase all of FET’s gains since the end of June 2020.
FET forms a bearish wedge pattern.
The price of Fetch.AI token is ‘Rising Wedge.‘
This pattern forms when asset prices consolidate between rising support lines and converging wedge-shaped resistance lines. Declining volume is often accompanied by a breakdown below the pattern.
The pattern’s target price is equal to the height of the back of the wedge. If the Fetch token price falls below a bearish pattern, the token could fall to its theoretical price target of $0.03, a decline of nearly 99% from current levels.
However, such drastic price drops are rare and Fetch developers are essentially having to beat themselves up to achieve these milestones. Considering the bullish signals the project is gathering, FET price may help nullify the pattern.
For example, Fetch.AI announced the launch of Fetch Compute after investing $100 million in infrastructure. The FET team stated that Nvidia GPUs can be leveraged to boost the computing power of developers, thereby fostering ecosystem growth for the Fetch.AI token.
This program gives developers and users access to high-end Nvidia GPUs, including the H200, H100, and A100. The initiative also includes a system that rewards users with credits for FET staking.
Fix after FET reaches ATH
Meanwhile, FET price has been on the rise after the token rose 95% in March 2024 and hit a new ATH on the charts. It is common for a new ATH to be revised after posting as traders start selling to book profits.
Moreover, FET’s Relative Strength Index (RSI) remains overbought and stands at 90.88 on the daily chart. RSI is a momentum indicator that measures asset price movements to identify overbought or oversold conditions.
Overbought RSI levels and rising average trend lines indicate a bullish trend in the market. However, traders often view overbought RSI levels as bearish signals. This is because it usually precedes a bearish reversal or consolidation phase in the underlying token.
Therefore, if a correction occurs, FET price is likely to find support near $2.05. Additionally, a drop below the immediate support level may cause the Fetch.AI token price to fall near the 20-day EMA (red wave) support of $1.5 before recovery.
Conversely, an upward trend is likely to push FET into price discovery, and the token may face resistance at the 0.382 Fibonacci level near $3.17. However, a break above the immediate resistance may help FET price target the resistance near $3.8.