Cryptocurrency analyst Manish Chhetri has made a worrying prediction for the price of Fetch.ai (FET) in the short term. According to Chhetri, the cryptocurrency is facing stiff resistance at the $1.65 mark, while it is currently trading at $1.46.
On-chain data reveals that investors are taking profits. This is resulting in an increase in FET supply on exchanges, indicating a possible downward movement in the price in the coming days.
According to the analyst, Fetch.ai faces significant resistance at $1.65, which is the 61.8% Fibonacci retracement level measured from the weekly low of $0.51 on Feb. 5 to the weekly high of $3.48 on March 25.
Chhetri highlights that if FET fails to sustain above this support level and closes below the 200-week Exponential Moving Average (EMA) around $1.30, it could see a 30% drop, retesting the next weekly support level at $0.89.
“Momentum indicators are supporting this bearish scenario. The Relative Strength Index (RSI) on the weekly chart briefly dipped below the mid-50 level, while the Awesome Oscillator (AO) is on track to do the same, strongly indicating bearish dominance,” he says.
Fetch.ai Price Analysis
In addition to technical indicators, on-chain data also supports the bearish outlook. Santiment’s Age Consumed Index, for example, shows that inactive tokens, which have been stored for long periods, are on the move. Historically, such spikes have been followed by a decline in Fetch.ai’s price. The most recent spike on June 27 predicts a bearish trend for FET.
Additionally, Santiment’s Network Realized Profit/Loss (NPL) indicator, which calculates daily Return on Investment (ROI) based on on-chain transaction volume, spiked from 1.06 million to 34.41 million on June 26 and 27. This increase indicates that holders were selling their tokens at a significant profit, coinciding with an 11% price increase.
During this event, FET supply on exchanges increased from 145.49 million to 173.01 million in two days.
“This increase in supply on exchanges signals a bearish outlook. Investors are moving tokens to exchanges, increasing selling activity,” he noted.
Despite on-chain metrics and technical analysis pointing to a bearish trend, Chhetri mentions a possible turnaround.
“If the FET weekly candlestick closes above $1.65, it would invalidate the bearish thesis, creating a rally on the weekly timeframe and potentially pushing Fetch.ai price up 31% to the next weekly resistance level at $2.16,” he concludes.
Source: https://www.criptofacil.com/preco-do-fetch-ai-deve-estender-queda-apos-testar-nivel-de-resistencia-diz-analista/
