Heavy Selling Affects FET, Yet Buyers Remain Resolute

Fetch.ai (FET) is experiencing a bearish trend in a declining market, yet trading activity has significantly increased, indicating persistent buying interest. Key technical indicators reveal that accumulation is still strong among buyers. The formation of a dragonfly doji on the price chart could signal a potential reversal. Meanwhile, the broader AI token market has seen a slight downturn, but remains robust in the long term.

Key Takeaways

Price Decline: FET has fallen by 11%, but trading volume surged by 145%, indicating increased market participation.
Strong Accumulation: Technical indicators like the Accumulation/Distribution (A/D) and Chaikin Money Flow (CMF) show continuous buying interest amidst price drops.
Potential Reversal: The dragonfly doji pattern suggests possible upside ahead if FET can overcome key resistance levels.
Broader AI Market Trends: The AI-related crypto market has seen a slight decline, but has a strong long-term outlook.

Heavy selling hits FET, yet buyers refuse to back down

Market Overview of FET

Fetch.ai (FET) has recently slid into a bearish position as the overall market sentiment continues to weaken. Despite this downturn, trading activity has picked up, with volume increasing by 145% to around $145 million. This increase in volume, combined with a decrease in price, may indicate a broader market adjustment, with buyers looking to position themselves for a potential rebound.

FET technical indicator Source: TradingView

Active Buyer Accumulation

The current market pullback has not fully reflected in significant technical indicators, which still show signs of buying interest. The Accumulation/Distribution (A/D) indicator remains tilted towards accumulation, suggesting that buyers are active in the market despite lower prices.

Additionally, data from the 4-hour trading chart indicates total traded volume is increasing, with around 697 million FET tokens accumulated at the time of reporting.

In a similar vein, the Chaikin Money Flow (CMF), which tracks money flow in and out of the asset, shows that buyers remain dominant. At present, the CMF reads 0.09 on a scale of -1 to 1, indicating a positive outlook and suggesting that ongoing buying pressure could pave the way for a rebound, even as sellers influence short-term activity.

Signs of Recovery with Doji Formation

The price chart indicates the formation of a dragonfly doji, a T-shaped candlestick pattern suggesting a potential upward reversal after a prolonged market decline characterized by several lower lows. This doji formation aligns with other positive technical indicators hinting at a possible recovery, though FET must clear vital resistance levels for any significant upside.

FET price chart Source: TradingView

The initial hurdle is set at $0.27, a level that historically provided support. Successfully reclaiming this area and maintaining price consolidation above it would signal that traders are regaining confidence. The next significant resistance is at $0.31, representing the previous peak before the recent decline accelerated. A decisive breakthrough above this level, coupled with higher price readings, would indicate that traders are re-entering for the long term.

There are two significant intermediate resistance levels between $0.27 and the peak at $0.34 that might hinder upward momentum. A clear break through this range is necessary for a sustained rally.

AI Market Overview

In a broader context, the AI sector of the cryptocurrency market—including FET—has underperformed in the short term. The total market cap for AI tokens decreased by 1.79% to approximately $19.64 billion, continuing a downturn that began around January 15. This decline reflects general market wariness rather than concerns tied to any single asset.

Nonetheless, the AI token market remains vibrant in the long run, up by 16.59%, with trading volume holding steady at $3.34 billion.

AI market capitalization Source: CoinMarketCap

The recent price movements of FET may reflect a similar pattern—a short-term correction within a more extensive, long-term market adjustment. With reinforcement from accumulation data and technical signals indicating potential reversals, conditions suggest that short-term selling pressure may eventually lead to renewed bullish activity.

Final Thoughts

Overall, while FET is currently under pressure, the underlying metrics show sustained buying interest, as reflected in the technical indicators and volume. Future price action will depend on the cryptocurrency’s ability to overcome key resistance levels and restore trader confidence.