- FET climbed to $0.39 but was immediately rejected after the breakout.
- The $0.36 region could be the perfect entry point should selling momentum drive FET there.
- With November filled with AI updates, traders are bullish on FET’s price action.
As altcoins continue to trend higher, AI tokens like Fetch.ai (FET) have also not been left behind. Previously, Coin Edition reported how FET has been performing well, as many AI-related conferences were billed for November.
FET continued to build upon its initial hike. For instance, FET broke out of the $0.36 consolidation area on November 6. This breakout resulted in an 8% increase as the price hit $0.39 on the same day. However, its price at $0.39 was short-lived today, and an attempt to retest the zone was met with resistance, pushing the token price down to $0.38.
However, Caleb Franzen, trader and founder of Cubic Analytics, opined that FET was still bullish. Before his latest post on X (formerly Twitter), Franzen had also projected a breakout for FET on November 6.
It’s Shorts Time to Shine
One of the indicators to watch out for is the Awesome Oscillator (AO). At press time, the AO was 0.02. However, the red bars displayed by the indicator mean that FET was undergoing a sell-off period. So, a move down to $0.37 is likely.
At the same time, the red bars’ height of the AO seems to be dropping, indicating a reduction in selling momentum. If the sellers’ presence continues to wane, then buying pressure at $0.36 may be the catalyst FET needs to repeat last month’s rally.
In addition, FET’s weighted funding rate was positive as of this writing. The positive value of the funding rate means most traders are bullish on the price action. Therefore, more than 50% of the average open position is long.
In terms of liquidation, longs have suffered the most of the wipeout in the last 12 hours. According to Coinglass, long liquidations were worth $47,860. Shorts, on the other hand, only had $1,420 FET positions liquidated.
While there are signs that FET’s price may decrease, the bullish sentiment could be based on positive announcements in the AI sector. An example is OpenAI’s disclosure of a GPT update. In conclusion, traders, while assessing the technical state of FET, should also be on the lookout for external factors.
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