Fetch.ai hopes Nvidia's magic can save FETs from the abyss
NOIDA (CoinChapter.com) — Fetch.ai (FET) has experienced significant price volatility recently. The token’s value dropped to $1, highlighting the bearish pressure on it. Amid the increased volatility, the Artificial Superintelligence Alliance (ASA) announced a revised timeline for the much-anticipated token merger.
The move is aimed at enhancing the efficiency and interoperability of the ecosystem and further integrating AI capabilities across various platforms.
FET prices have seen a sharp recovery over the past seven days, likely driven by Nvidia’s recent growth, making it the world’s most valuable company. Despite these efforts, the price of this AI crypto token remains under pressure, reflecting broader market dynamics and investor sentiment.
Nvidia's hype may help avoid FETs
Fetch.ai token price is fluctuating within a “descending channel” with clear resistance at $1.57 and major support at $1.00. This pattern, marked by parallel trendlines, suggests that bearish sentiment will continue unless significant buying pressure emerges.
Increased volume during the price decline highlights strong selling pressure, underscoring the need for careful evaluation of support and resistance levels.
Nvidia has been in the spotlight lately, with its valuation reaching a staggering $3.3 trillion. This growth can be attributed to several key factors. First, Nvidia reported record quarterly revenue, driven primarily by its data center and AI-related businesses.
In the first quarter of 2024, Nvidia's revenue reached US$13.5 billion, a year-on-year increase of 50%, of which the data center business alone contributed US$7.5 billion.
In addition, global demand for artificial intelligence and machine learning applications has soared. Nvidia's graphics processing units (GPUs) are at the heart of the AI revolution, powering everything from data centers to self-driving vehicles.
However, despite this positive sentiment, Fetch.ai’s technical indicators suggest caution should be maintained. The coin must clearly break above the $1.57 resistance to signal a potential bullish reversal. A rebuttal of the channel’s upper trendline could push FET prices lower.
Traders should keep an eye on the $1 support level as a breakout could lead to further declines.
Broad enthusiasm around Nvidia’s progress could be a catalyst for renewed interest in AI-related cryptocurrencies, but market participants should remain vigilant and make decisions based on confirming signals and volume patterns.
Bullish pattern could aid FET recovery
Meanwhile, FET prices have formed a bullish technical pattern known as a “falling wedge.”
The falling wedge pattern consists of a pair of trendlines connecting lower highs and lower lows, forming a gradually narrowing shape that slopes downward.
The pattern suggests that during a downtrend, the price of an asset loses bearish momentum while consolidating and is ready for a potential upward reversal. Typically, a breakout occurs along the general trend to the upside.
To estimate the price target, traders measure the widest part of the wedge and project this distance upward from the breakout point. Increased volume at the time of the breakout confirms the reliability of the reversal, indicating greater market confidence and a higher probability of success.
According to the rules of technical analysis, the FET price could rise by 153% from the current level to reach the target predicted by the pattern at nearly $3.9.
However, the coin is currently testing the support trendline of the pattern. Therefore, bulls must take advantage of the Nvidia hype to ensure that Fetch.ai does not invalidate the pattern.