The price of Fetch.ai (FET) is currently trading within a bullish pattern and is very close to reclaiming a significant support level. If successful, it could see a sharp increase in the near term.
Descending parallel channel
The price of Fetch.ai (FET) has been trading within a descending parallel channel since the beginning of February 2023. This is a bullish pattern that often leads to breakouts in most cases.
The price has tested both the channel’s resistance and support multiple times and is currently in the process of bouncing off the channel’s support.
However, the price has broken below the 0.618 Fibonacci retracement support ($0.264) of the previous uptrend. This Fibonacci level is significant as it often acts as a point of completion for a correction. Therefore, FET needs to reclaim this level to confirm the ongoing recovery.
If successful, it could rise towards the channel’s resistance at $0.36, marking a 40% increase from the current price.
Daily outlook
The daily chart shows that the FET price has reclaimed the horizontal support area at $0.26 and is in the process of confirming it as support.
If successful, the FET price could rise to the nearest horizontal resistance at $0.30. This move would also help the FET price reclaim the 0.618 Fibonacci support level mentioned earlier.
The RSI indicator supports the possibility of further upside as it is moving out of the oversold zone and trending upwards. The last time the RSI indicator performed this move (green arrow), a strong rally followed.
Conclusion
Technical indicators suggest that the FET price is likely to recover in the near future. The nearest targets are $0.30 and higher to $0.36.
A break below the recent low at $0.23 would invalidate this possibility.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
Read more:
- Polkadot (DOT) Price Could Recover In Next Few Days, This Is Potential Target
- OKX Listing Of Ordinals (ORDI) Drives 30% Surge In Investor Interest