The Federation for Transcendent Intelligence (FET) is showing a recovery pattern on the chart, with a 25% increase this week. While the rise seems optimistic, potential bearish signs suggest that the cryptocurrency could be preparing for a significant drop.
Of further concern for investors is the formation of a key bearish pattern that could determine the loss for Holder FET.
FET investors face the need to sell
The Price and DAA divergence is currently generating a sell signal for FET, raising concerns about sustainability. Rising prices are working against falling network activity, creating a misalignment that often leads to corrections. History shows that similar scenarios often trigger price declines, potentially dampening investor optimism.
This divergence suggests that despite recent gains, FET optimism may be temporary. To align prices with online activity, a correction seems imminent. This pattern reflects a broader market trend that is correcting itself as prices exceed natural network growth.
FET’s macro dynamics, analyzed through the Average Directional Index (ADX), provide a refined picture. ADX is currently below the neutral threshold, showing that the previous downtrend has weakened and is likely to end. This development suggests that the FET may be moving into a more stable phase.
Interestingly, if ADX starts to rise again, it will signal a strengthening uptrend. This momentum highlights the importance of persistence in pushing FET to the next resistance levels, giving hope to investors looking forward to further growth.
FET price prediction: Beyond the model
The price of FET is on the verge of forming a bearish head and shoulders pattern, which is a warning sign of potential losses. A fall below the $1.19 support will confirm this pattern, potentially triggering a significant decline.
Despite the bearish signals, mixed factors suggest FET could remain above $1.40, even if a break above $1.71 is unlikely. This support level could act as a shield against further losses, providing some hope to investors.
If FET can turn the $1.71 resistance into support, it could move above $1.95 and even to $2.00. This will negate the bearish view and strengthen the uptrend, providing an optimistic scenario for the future of this altcoin.