Stock Slump and Recovery Prospects: Assessing FET's Future after the Decline
In the cryptocurrency market, FET (Fetch.ai) is currently at a crucial point, with a bearish to neutral short-term outlook. This shift in sentiment comes after the token's breakdown of a long-term macro triangle, which has shaken the confidence of bullish investors.
According to X user Dami-Defi's analysis, this macro triangle, which spans from the 2021 peak to the 2022 base, has FET currently trading near the lower boundary. The price recently fell below the 0.5 Fibonacci retracement level at approximately $0.66166, a medium-term support level that has now been lost.
This downward move indicates weakening momentum and suggests that the $0.608 level, described as the "last thread of optimism," is the crucial lower Fibonacci or macro support to watch. If FET manages to maintain above this level, it may stabilize the price; falling below could signal further bearish continuation.
The Elliott Wave analysis aligns with this corrective phase, suggesting a wave 2 or C correction phase before potential resumption of the trend. However, a detailed Elliott Wave count for FET is not explicitly available.
Over the past week, FET has seen a roughly 7.12% decline, consistent with the technical signs of weakness. The daily FET chart shows a decisive break from a six-month symmetrical triangle pattern, which has been bounded by a rising support line and a descending resistance.
The failure of this triangle pattern points to a potential downside continuation for FET. The measured move from the triangle's apex to support suggests potential levels below $0.34497. If the Fibonacci confluence zone between $0.660 and $0.608 fails, the next likely destination lies between $0.516 and $0.49.
However, it's important to note that FET continues to respect higher lows that have persisted since early 2022. If $0.56 is breached, buyers could potentially step in between $0.45 and $0.34 where price has bounced before during past dips.
The short-term outlook for FET remains fragile. However, key long-term structures still offer hope to bulls. The monthly RSI hovers between 46 and 50, showing a lack of strong momentum in either direction.
As we move into early September, investors should watch these key Fibonacci support levels closely for direction. The next major support for FET is around $0.56, on the 0.618 Fibonacci level. This aligns with the 100% retracement level of the wave count and the continuation of a corrective cycle that could stretch into early September.
In conclusion, while the short-term outlook for FET is bearish to neutral, key long-term structures still offer hope to bulls. Investors should keep a close eye on the critical support levels around $0.608 and $0.56 for direction in the coming weeks.
- The current shift in sentiment towards FET in the cryptocurrency market, following its breakdown of a long-term macro triangle, could potentially affect the crypto finance industry, as investors reassess their future crypto investing decisions based on the token's performance.
- The Elliott Wave analysis predicts a wave 2 or C correction phase for FET before resuming its previous trend, hinting at the necessity for investors to stay updated on the token's technological advancements, as these could influence the token's eventual recovery.
- The potential downside continuation for FET, as indicated by the failure of the six-month symmetrical triangle pattern and the moving Fibonacci support levels, highlights the importance of technology-based solutions in finance, as novel technologies could help FET stabilize during challenging financial periods.
