Hello, fellow traders!
This is my analysis on Artificial Superintelligence Alliance, formerly known as Fetch.ai (FETUSDT). I will call FET in short.
In my previous post on FET, I’ve marked that price breaking through the resistance line could signal a possible uptrend in future.
1️⃣ Analysis
In the daily chart, we see FET in a continuous downtrend after peaking on March 28th.
The red resistance line is drawn based on September 24th’s high and October 15th’s high.
However, when extended to the left, we see the line very close to ATH, increasing its relevance. For the last 8 months, the price didn’t even come near the resistance line but has been constantly touching it for last 2 months. And on November 5th (election day), we see the breakout.
So this is where we enter long, right? Not quite.
When we draw another (purple) resistance line based on ATH and May 22th’s high, we see price reacting to the line as it approaches it on August 25th. It eventually broke through the line on September 10th (which was a day for a debate between Trump and Harris, though I find little to no connection between those two. BTC and many other cryptos did not have notable reaction.) The breakout led to some uptrend until the end of September, when the price started to decline again. It was only after the election when the price rebounded.
2️⃣ Expectations
I feel positive about FET’s future but we might see a pullback before the uptrend.
Looking at the daily chart of Tron, we see price breaking through the resistance line on July 27th, but the uptrend begins only after the price (almost) retests the former resistance line, which has turned into support following the breakout.
While Tron may not represent FET’s exact future, it gives us an idea of how the price might move in near future. Tron is one of the biggest cryptos in the market with market cap of 14 billion dollars. FET being smaller with 3.9 billion, it’s still one of the leading cryptos. Its current rank is 28th, category being layer 1 and AI.
Difference between Tron and FET is that while Tron’s breakout showed a lot of hesitation, FET’s breakout was more decisive and was fueled by the election results. And with the current bull rally of the market, odds of FET reaching its ATH look positive.
The price may continue to move upwards, or it may reach AoC (Area of Confluence) marked as a red box first before continuing the uptrend. AoC is where the price action zone and the support line (formerly a resistance) meet.
If we confirm a reversal at the AoC, we may enter long.
3️⃣ Key approach
Our first strategy is to enter long after confirming reversal at the AoC. The price, however, may not reach the AoC at all and continue to rise. This is possible due to the current market sentiments. We currently see price being retested as it touches the white trendline. If we see the price successfully passing the yellow AoC box, we may be more confident in an uptrend.
4️⃣ Other approach
I don’t have different approach for this analysis.
5️⃣ Considerations
While future of FET looking promising (for now), it is wiser to stay cautious. The breakout on November 5th and the current market sentiments both suggest promising future for this crypto. However, we always want to enter AFTER the confirmation. Best scenario would be price being retested at the red AoC box before continuing the uptrend.
I also want to note that while Tron’s chart may help us in analyzing FET, we cannot assume FET will exactly follow Tron’s movements.
React, don't predict! Stay disciplined and patient. Don't get greedy and be thankful.
God bless :)
Matthew 6 33-34
This is my analysis on Artificial Superintelligence Alliance, formerly known as Fetch.ai (FETUSDT). I will call FET in short.
In my previous post on FET, I’ve marked that price breaking through the resistance line could signal a possible uptrend in future.
1️⃣ Analysis
In the daily chart, we see FET in a continuous downtrend after peaking on March 28th.
The red resistance line is drawn based on September 24th’s high and October 15th’s high.
However, when extended to the left, we see the line very close to ATH, increasing its relevance. For the last 8 months, the price didn’t even come near the resistance line but has been constantly touching it for last 2 months. And on November 5th (election day), we see the breakout.
So this is where we enter long, right? Not quite.
When we draw another (purple) resistance line based on ATH and May 22th’s high, we see price reacting to the line as it approaches it on August 25th. It eventually broke through the line on September 10th (which was a day for a debate between Trump and Harris, though I find little to no connection between those two. BTC and many other cryptos did not have notable reaction.) The breakout led to some uptrend until the end of September, when the price started to decline again. It was only after the election when the price rebounded.
2️⃣ Expectations
I feel positive about FET’s future but we might see a pullback before the uptrend.
Looking at the daily chart of Tron, we see price breaking through the resistance line on July 27th, but the uptrend begins only after the price (almost) retests the former resistance line, which has turned into support following the breakout.
While Tron may not represent FET’s exact future, it gives us an idea of how the price might move in near future. Tron is one of the biggest cryptos in the market with market cap of 14 billion dollars. FET being smaller with 3.9 billion, it’s still one of the leading cryptos. Its current rank is 28th, category being layer 1 and AI.
Difference between Tron and FET is that while Tron’s breakout showed a lot of hesitation, FET’s breakout was more decisive and was fueled by the election results. And with the current bull rally of the market, odds of FET reaching its ATH look positive.
The price may continue to move upwards, or it may reach AoC (Area of Confluence) marked as a red box first before continuing the uptrend. AoC is where the price action zone and the support line (formerly a resistance) meet.
If we confirm a reversal at the AoC, we may enter long.
3️⃣ Key approach
Our first strategy is to enter long after confirming reversal at the AoC. The price, however, may not reach the AoC at all and continue to rise. This is possible due to the current market sentiments. We currently see price being retested as it touches the white trendline. If we see the price successfully passing the yellow AoC box, we may be more confident in an uptrend.
4️⃣ Other approach
I don’t have different approach for this analysis.
5️⃣ Considerations
While future of FET looking promising (for now), it is wiser to stay cautious. The breakout on November 5th and the current market sentiments both suggest promising future for this crypto. However, we always want to enter AFTER the confirmation. Best scenario would be price being retested at the red AoC box before continuing the uptrend.
I also want to note that while Tron’s chart may help us in analyzing FET, we cannot assume FET will exactly follow Tron’s movements.
React, don't predict! Stay disciplined and patient. Don't get greedy and be thankful.
God bless :)
Matthew 6 33-34
Note
Now we see a big market pressure - this is why we don't want to make assumption so easily! 😅
I'm not saying this would lead to a complete downtrend, but I know my mind won't stand watching at the wallet balance. I know how stressful it becomes - so I always want to enter after confirmation.
Note
The current pullback is as aggressive as the original uptrend - the price has already reached the support line.
We'll see how things go!
God bless you :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
God bless you :)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.