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FET Forecast: Key Support and Resistance Zones Unveiled!
Welcome back to another edition of The Crypto City Trading Newsletter, your go-to source for in-depth technical analysis and expert insights into the dynamic world of cryptocurrency trading. Today we are focusing on the Daily Chart of Fetch.AI (FET).
The technical analysis provides an in-depth look at the Fetch.AI (FET). The analysis focuses on identifying key support and resistance levels, recent price movements, and possible future scenarios. By analyzing these factors, traders will gain insight into the current market condition and make better trading decisions.
Starting with the resistance zones, the Monthly Resistance Zone (Yellow) at $3.081 to $3.479, stands out as a substantial barrier. This zone has historically experienced significant selling pressure, making it a challenging zone for any upward price movement. If the price approaches this zone again, traders should expect significant resistance, which could result in a reversal or, if broken, a major bullish breakout.
Below this, the Weekly Resistance Zone (Pink) at $1.799 to $1.987, indicates another area of strong weekly resistance. The price has failed to break through this level in the past, suggesting that sellers are actively defending this zone. A successful break above this zone could indicate a shift in market sentiment toward bullishness, potentially resulting in a retest of the monthly resistance zone.
On a shorter time frame, the Daily Resistance Zone (Purple) at $1.052 to $1.122, is currently limiting the price’s upward rise. The price has been unable to close above this zone, implying that this zone acts as a strong barrier. A daily close above this zone might spark a rally, with the next target being the weekly resistance zone, making it an important region for traders to monitor.
The chart also shows crucial support zones that the price is now testing. The Monthly Support Zone (Green) at $0.748 to $0.830, is very interesting because the price is now consolidating on this zone. This zone has served as a floor for the price, with buyers stepping in to defend it. However, a break below this support might result in a substantial decline, with the price potentially heading for lower support levels.
The Monthly Support Zone (Blue) at $0.453 to $0.525, is the next key support area. If the price falls below the Green zone, this Blue zone may become the next region where buyers enter, giving potential support and a foundation for a future bounce.
Currently at the time of writing the trading volume is at $10.313M, indicating a lack of strong buying interest at the current levels. A significant increase in volume would be necessary to confirm any potential reversal or breakout.
The price of FET is currently trading at $0.832, consolidating on the monthly support zone (Green). The market remains cautious, with the price unable to break above the daily resistance zone (Purple) while being supported by the monthly zone (Green). This indicates a cautious market sentiment, with traders waiting for a clear move above or below the zone.
The price of the FET has reached a critical point. A bullish scenario would see the price close above the daily resistance zone (Purple), potentially triggering a surge to higher resistance levels. On the other side, a bearish scenario could occur if the price falls below the current support zone (Green), resulting in a decrease towards the next key support level. Traders should pay particular attention to these zones, incorporating them into their trading methods and seeking extra confirmation from volume and momentum indicators.
Technical Indicators
Based on technical indicators on a daily time frame
The relative Strength Index (RSI) value is at 37.4 (Neutral)
Momentum (10) is at -0.124 signaling a (Buy)
MACD Level (12, 26) is at -0.124 signaling (Sell)
Exponential Moving Average (50) 1.211: (Sell)
Exponential Moving Average (100) 1.437 : (Sell)
Simple Moving Average (100): 1.599 (Sell)
Exponential Moving Average (200): 1.467 (Sell)
Ichimoku Base Line (9, 26, 52, 26): 1.106 (Neutral)
Volume Weighted Moving Average (20): 0.934 (Sell)
Hull Moving Average (9): 0.859 (Buy)
Interpretation
The analysis of both oscillators and moving averages indicates a predominantly bearish outlook for FET/USDT on the daily timeframe. The strong sell signals from moving averages, particularly from the medium to long-term EMAs and SMAs, suggest that the market is in a downtrend. The neutral readings from most oscillators imply that while the market is not currently overbought or oversold, the momentum is still leaning towards selling rather than buying.
The single buy signal from the Momentum oscillator may indicate a slight positive movement, but it is not enough to counter the overall bearish sentiment. Traders should be cautious, as the combined indicators suggest a continuation of the downward trend, and any bullish moves may be short-lived unless there is a significant change in market dynamics.
Liquidation Heatmap
The FET Liquidation Heatmap reveals significant liquidation activity around the $1.362 – $1.571 level. This heatmap, which visualizes leverage liquidations, shows a concentration of liquidations near this price, indicating it as a critical resistance level where many leveraged positions have been liquidated. The strong activity suggests that as the price approaches this level, it faces substantial selling pressure, likely due to traders closing positions to avoid further losses. This level is crucial to watch; breaking above it could shift market sentiment, but persistent failure to do so might reinforce the bearish trend.
Long-Term Trading Setup
We will buy in parts, we will divide our budget into 3 sections, and allocate for buying at each key support mentioned in the chart.
Here are the numbers where you can buy FET and take profits for the trade.
Buy 1: Current
Buy 2: $0.614
Buy 3: $0.486
At buy, 3 we will go all in because this is the lowest.
TP1: $1.493
TP2: $2.510
TP3: $3.479
Conclusion
The analysis of Fetch.AI (FET) highlights key support and resistance levels, with the current price at $0.832 testing crucial support. The market shows a bearish trend with sell signals from various indicators, though there is some potential for a short-term rally. Key resistance zone (Purple) to watch is at $1.052 to $1.122. Breaking above this could signal a shift while falling below current support could lead to lower levels. Traders should monitor these zones and volumes for further insights.
Your Essential Trading Newsletter
This detailed analysis provides a comprehensive understanding of the current market structure and potential scenarios. Traders can use these insights to make informed decisions and effectively navigate the market.
Stay tuned to The Crypto City Trading Newsletter for more in-depth analyses, market insights, and expert guidance. As always, we strive to empower you with the knowledge and tools needed to navigate the fast-paced world of cryptocurrency trading. Happy trading!
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The Crypto City Trading Team