Fetch.ai (FET) has been displaying positive market trends despite a recent 11% price decline over the last 24 hours. The overall outlook for FET remains optimistic, with analysts eyeing potential growth in the upcoming months. While FET’s price has been undergoing some fluctuations, its underlying bullish structure suggests that a surge toward $3.5 before 2025 is possible, given favorable market conditions and strong support at key levels.
**Price Performance and Market Dynamics**
FET’s price has seen a solid uptrend since September, gradually increasing from around $0.50 to its current price of $1.74. This rise is marked by a series of higher lows and higher highs, a pattern commonly associated with strong buying pressure and market confidence. The $1.74 level is particularly significant as it acts as a pivotal point between bullish and bearish market sentiment. Despite recent volatility, the price has remained above this level, reflecting a resilient market structure.
Although FET experienced a dip in the past 24 hours, the broader weekly chart still reveals an overall bullish trend. A small bullish wick under the current week’s candle indicates that buyers are actively attempting to push the price upwards. If the resistance near $2 holds and FET can maintain its upward momentum, the asset may be on track to reach higher targets. Analysts are predicting a potential price of $3.5, which would represent a 99% increase from the current price, depending on the strength of the uptrend.
**Liquidity Risk and Key Support Levels**
An important consideration for FET’s short-term trajectory is the liquidity risk associated with leveraged positions. According to data from Binance, approximately $1.2 billion worth of leveraged positions are at risk of liquidation if FET’s price returns to around the $2 level. The $1.8 price point has emerged as a critical support zone, as it represents a threshold where a large number of liquidations could trigger further downward price movement.
However, if FET’s price moves above the $2.1 resistance level, the potential for upward price action increases significantly. Liquidations in this resistance zone could propel the price higher, sparking a rally and boosting bullish sentiment. As a result, the market could see heightened volatility, particularly if the price gravitates toward these key liquidity zones, either triggering a correction or accelerating a potential breakout.
**On-Chain Activity and Network Adoption**
FET’s on-chain data shows a notable uptick in network activity. Active addresses have recently reached new highs, which is often correlated with price increases. This surge in network engagement is a strong signal that more users are interacting with the FET ecosystem, potentially leading to higher demand for the token. Increased active addresses may indicate both new user adoption and greater trading activity, which are typically associated with rising prices.
Interestingly, the number of new addresses engaging with FET has also spiked, suggesting that the token is attracting more attention from the crypto community. While the zero balance addresses show no clear pattern with price movements, they do reflect post-transaction statuses, which do not directly impact price trends. Nonetheless, the increased engagement from active users is a bullish indicator, as it highlights growing interest in the FET network.
**Conclusion**
The overall outlook for FET remains positive, despite recent short-term fluctuations. With solid support at $1.74 and growing on-chain activity, FET is well-positioned for potential growth in the coming months. If the asset can maintain its bullish momentum and break through key resistance levels, a price target of $3.5 before 2025 seems achievable. While liquidity risks and market volatility should be monitored closely, FET’s strong fundamentals and increasing user engagement suggest that the token could experience significant gains, possibly making it a promising investment opportunity as the year progresses.
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