Key Levels for FET Bulls: Is $0.33 Within Reach?

Recent indicators show that while the FET token has experienced significant outflows and price declines, there are signs of potential recovery. Key levels at $0.2588 and $0.1837 could serve as support, while investor activity hints at renewed buying interest.

Key Takeaways

An $13 million drop in open interest and overbought conditions led to sell-offs and profit-taking in the FET market.
Spot inflows of $6.5 million, along with an RSI near 48 and a bullish MACD crossover, suggest a recovery may be possible.
The FET token has seen a steep 14% price decline over six days, with overall market sentiment remaining bearish and monthly outflows down by 40%.
Despite recent losses, the current drawdown could be a basic correction, indicating a potential for future gains. Here’s what AMBCrypto has found through its analysis.

Price Correction for FET

Recent market analysis points to FET’s price drop occurring as it entered overbought territory coupled with a surge in liquidity outflows. The Bollinger Bands chart indicates that FET was trading in this overbought zone, characterized by the price surpassing the green line, which typically represents a strong liquidity wall where major sell orders are located.

FET Bollinger Band Chart

Source: TradingView

Moreover, outflows from the derivatives market have contributed significantly to the decline, with a substantial drop in open interest within the last 24 hours. According to CoinGlass, more than $13.2 million in contract positions were closed, including $1.4 million from liquidations.

The upcoming target for price recovery is the middle Bollinger Band, positioned at $0.2588, which could provide essential support for a rebound. If this level fails to hold, FET might face further declines toward the lower band at $0.1837, historically known as a significant support level. Interestingly, data suggests that the recent decrease could merely be a corrective phase, with a rally potentially on the horizon.

Brief Corrective Phase

This downturn may be a short-term correction, especially as market sentiment indicates a return of liquidity. CoinGlass’s Spot Exchange NetFlow data reveals that even during this price decline, spot investors accumulated more than $6.5 million in FET over just two days—this buying activity could carry on into the upcoming week.

FET Spot Investor Activity

Source: CoinGlass

While open interest has decreased by $13 million, the funding rate has risen to 0.0083%, illustrating that long traders are still covering their short positions. This positioning often denotes confidence in an upcoming rebound.

Signs of Revival in Momentum

Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) reveal that selling pressure exists, but it is easing. The RSI has dipped slightly below the 50 mark, which indicates a weakening of buying momentum. However, the MACD is showing an upward trend, signaling that bullish sentiment is still present—a possible indication of recovery.

FET Technical Indicator Chart

Source: TradingView

Should the RSI make a positive turn and the MACD continue its upward trajectory, FET could be positioned well for a rebound.