FET Traders Brace for 15% Drop as Market Consolidates

FET traders are preparing for a potential price decline to $0.76 in the near future as the cryptocurrency market experiences consolidation. The altcoin has shown a bearish divergence, leading to a retracement, but there is still potential for a future rally. According to a recent analysis, FET's price movements reflect broader market sentiments, and its ability to maintain key support levels will be crucial for its future performance.

FET, the token associated with the Artificial Superintelligence Alliance, has demonstrated a bullish trend despite recent fluctuations. With a market capitalization of $2 billion, it holds a significant position in the cryptocurrency space. Recent price charts indicate that while the token experienced a dip following a bearish divergence, it is positioned for potential growth.

The altcoin market has generally moved sideways over the past two weeks. However, a potential breakthrough by Bitcoin into all-time high territory could provide the necessary momentum to lift the overall market. FET’s recent price pullback from $0.9 to $0.7 correlates with broader market movements, highlighting the interconnected nature of cryptocurrency trading.

Examining FET’s 1-day chart reveals a bearish divergence on the Money Flow Index (MFI), suggesting a potential distribution phase prior to a rebound. The recent drop to $0.7 represents a retest of significant horizontal support that many traders watch closely. By analyzing the Fixed Range Volume Profile from late January, it becomes clear that the Value Area High rested at $0.75—a key level that, once reclaimed, strengthens the token’s bullish posture.

The 1-week liquidation heatmap indicates an active liquidity cluster near $0.81, which has recently been swept clean, resulting in fluctuations between $0.83 and $0.77. Traders should note the potential for continued volatility, as aggressive short sellers could experience liquidation in this area. It appears FET may establish a trading range centered around $0.77-$0.81, allowing for the accumulation of necessary liquidity which, when properly calibrated, can fuel its next impulse move upward.

In summary, while FET is at a critical juncture with a potential dip to $0.76, the underlying market dynamics suggest that sustained demand could lead to future growth. Observing key support levels and trader reactions will be pivotal for understanding FET’s trajectory in the short term. As always, traders are encouraged to conduct thorough analysis and employ prudent risk management strategies.