FET price has seen significant price action recently, driven in part by shifting market sentiment following CUDOS’ addition to the Artificial Superintelligence Alliance (ASI).
A recent addition to the Artificial Superintelligence Alliance (ASI) has brought attention to FET, driving up its price by 14% over the past week. However, some concerns arise regarding FET’s price potential due to the increasing participation of short-term holders.
As reported by IntoTheBlock, these investors, defined as those who have held FET for less than a month, now control over 9% of the cryptocurrency’s circulating supply, up from 5.6% last month. While short-term holders aren’t currently dominating the market, their increasing presence could spell trouble for FET if they decide to book profits quickly.
Although they have not yet led to significant bearishness, the collective actions of these short-term holders could weigh on FET’s price. If the market shifts and these investors move to liquidate their positions, it might create downward pressure, leading to a temporary dip in FET’s price before any sustained rally can take place.
From a technical perspective, the ASI token is showing signs of building bullish momentum. The 50-day and 200-day exponential moving averages (EMAs) are on the verge of forming a Golden Cross, a bullish indicator that could signal the end of the current Death Cross, which has been active since mid-July. This potential shift would likely reinvigorate market confidence in FET, creating a foundation for further price growth.
The Death Cross has kept the market cautious over the past few months, but the possible formation of a Golden Cross could reverse this trend. If confirmed, it would suggest that FET’s longer-term price outlook is turning positive, reinforcing a more bullish macro trend for the cryptocurrency.
Since CUDOS joined the ASI, FET has noted a 14% rise over the past week. Despite this increase, investor sentiment remains cautious, reflecting the broader bearishness in the market. Currently, FET is trading at $1.46, indicating that while the news has provided a boost, it hasn’t sparked a significant rally just yet.
The altcoin is maintaining its position above a three-week-long uptrend support line despite facing resistance at $1.71. These mixed signals, combined with broader market conditions, suggest that FET might consolidate below this resistance while maintaining its support around $1.40. This phase of consolidation could provide stability, giving the altcoin a chance to regain momentum.
However, if FET can break through the $1.71 resistance and flip it into support, it would set the stage for a potential rally. Should this occur, FET could climb to $1.95, marking a 33% rise. A breach of this level could invalidate the current bearish outlook, setting the stage for the altcoin to reach the psychological barrier of $2.00.
