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AI Craze Isn’t Enough: FET Slides Back Toward Support

The AI hype isn't enough, so FET slides back toward support. For more information on the topic, you can visit CDS.

AI Craze Isn’t Enough FET Slides Back Toward Support
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FET Slides Back Toward Support: What’s Dragging the Token Down?

FET Slides Back Toward Support: What’s Dragging the Token Down?

Despite continued interest in AI-related tokens, the Artificial Superintelligence Alliance (FET) is still struggling. Following yet another unsuccessful effort at a breakout, the price is currently trading close to $0.2564. This shows that sellers are still very much in charge. The larger AI story continues to gain traction on social media, but it hasn’t yet resulted in significant bullish momentum on the charts.

Downtrend Strengthens: FET Rejected Again at Key Trendline

Since early October, every effort at a rebound has been thwarted by the short-term declining trendline that has kept FET stuck below. Sell pressure has been applied immediately after every push higher. This confirms that traders are dispersing into each bounce after making higher-level purchases. Critical moving averages also maintain the token’s cap.

  • 20-day EMA: $0.282
  • 50-day EMA: $0.325

Both are sloping downward, indicating steady overhead supply and waning momentum. The 100-day EMA ($0.414) and 200-day EMA ($0.545) above them form a broad resistance cluster that FET has to recover before any significant trend reversal can occur. Additionally, the negative bias is further supported by the Parabolic SAR. Since early October, SAR dots have not turned bullish and are still above the price. Upside attempts are expected to wane before gaining strength for trend continuation as long as this continues.

FET Eyes Key Support Zone as Bullish Momentum Fades

The larger structure reveals a significant demand area where purchasers intervened earlier this year, between $0.10 and $0.20. Although the price hasn’t returned to this area since its dramatic recovery in mid-November, it is still the best long-term support. Regaining the declining trendline and closing above the 20-day EMA is the first significant obstacle for bulls. In the absence of this, short-term momentum is still negative despite the excitement surrounding the AI sector.

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AI Craze Isn’t Enough: FET Slides Back Toward Support
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