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The recent movements of the Fetch.ai (FET) token indicate a critical juncture as traders prepare for potential retests of pivotal support levels.
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The emerging trading range reflects an increasing interest in FET, drawing attention to fluctuations between $0.76 and $0.9, which could signal both opportunities and risks for investors.
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As noted by COINOTAG, the $0.75 support level remains significant, marking a threshold that could influence future price actions.
This article delves into the current trading dynamics of Fetch.ai (FET), exploring key support levels and potential market movements in concise detail.
The implications of range and liquidity for FET traders
Source: FET/USDT on TradingView
The ongoing bullish structure on the 12-hour chart indicates a promising trend for FET, characterized by sustained higher highs and higher lows since mid-April. This trend, coupled with an increasing On-Balance Volume (OBV), underscores the strength of the demand driving the recent gains.
Furthermore, the Relative Strength Index (RSI) has predominantly stayed above neutral territory, reflecting the bullish momentum that has been evident over the past weeks. However, recent rejections near the $0.9 level contributed to a slight drop in the RSI, indicating possible exhaustion in the upward momentum.
Source: FET/USDT on TradingView
In a shorter timeframe analysis, the 4-hour chart illustrates the resilience of FET as it struggles to rise above established resistance. A clearly defined range between $0.805 and $0.94 has emerged, characterized by subdued selling pressure as suggested by a relatively stable OBV during this period. The RSI’s position around the neutral point further suggests a lack of decisive momentum in the short term.
Source: Coinglass
Additionally, the liquidation heatmap highlights significant levels just below the $0.8 support area, indicating a concentration of liquidations that could intensify price movements. A minor cluster at $0.89 suggests areas of potential liquidity that may draw market activity.
With Bitcoin’s price hovering around the $109k-$110k range, any downturn could influence FET to test the critical $0.8 support level. While a bounce-back toward $1 remains plausible, it requires strong volume incentives to shift market sentiment decisively.
Conclusion
In summary, the current trading environment for FET presents a mixed bag of opportunities marked by potential retests of critical support levels and observing liquidity dynamics as investors navigate this volatile market. Staying vigilant and informed is crucial, as traders could witness rapid shifts in momentum depending on market conditions and broader cryptocurrency influences.
