FET, the internal token of the Alliance for Artificial Superintelligence, is one of the biggest losers on the market today, with a price drop of 18% over the past 24 hours. This decline has pushed FET prices from a peak of $1.62 yesterday to $1.28 at the time of writing.
Following this development, it appears that the altcoin may continue to see lower lows. Here’s why.
Alliance for Artificial Super Intelligence Pulls Holder Back
A key indicator that suggests that FET price could fall further is Coin Holding Time. Coin Holding Time is the amount of time a Holder holds a digital currency without selling or making a transaction.
When increased, this means Holders are not selling, indicating confidence in the Token’s upside potential. However, on the contrary, the drop represents selling pressure, showing that Holder is not confident in the Token’s short-term potential.
Currently, FET Coin Holding Time has decreased by 83% over the past seven days. Based on the mentioned conditions, this decline signals weakness for the altcoin. Therefore, the price could drop below $1.30.
Due to this position, the Historical In/Out of Money (HIOM) index shows a decline in the number of FET Holders with unrealized profits.
The HIOM indicator is useful for comparing the percentage of people who were profitable at two different times when prices were in similar ranges. The change in the proportion of profitable addresses helps determine whether momentum favors buyers or sellers.
On November 11, the HIOM index showed that about 74% of Holder FETs were profitable. But at the time of writing, this number has dropped to around 53%. This decline suggests that market participants may not be motivated to buy the altcoin; Therefore, prices may struggle to increase.
FET Price Forecast: Increasing Selling Pressure
Looking at the daily chart, FET’s price decline has ensured that it falls below the Key Exponential Moving Averages (EMA). As seen below, both the 20 EMA (blue) and the 50 EMA (yellow) are located in the same area.
EMA can indicate support and resistance areas. A rising EMA usually favors a bullish price trend, while a falling EMA often acts as a resistance. Since the indices have fallen, and the FET price is below them, there is currently no solid support for this digital currency.
If this situation continues, FET price could drop to $1.24. If selling pressure increases, it could drop to as low as $1.13. However, if investors start accumulating Tokens in large volumes, things could change, and this altcoin could rise to $1.74.