The price of FET has changed significantly recently, partly due to the change in market sentiment following CUDOS joining the Alliance of Artificial Super Intelligence (ASI). Despite this development, some concerns have arisen regarding the pricing potential of FET.
One key factor is the growing participation of short-term holders, whose activities could potentially lead to volatility. As these investors enter the market, FET may have trouble maintaining its bullish trajectory.
Should FET owners be worried?
The rise in the number of short-term holders on the ASI network is becoming a growing problem. These investors, who typically hold FET for less than a month, now control more than 9% of the cryptocurrency’s circulating supply, up from 5.6% last month. While short-term holders do not currently dominate the market, their growing presence could spell trouble for FET if they decide to take profits quickly.
While they have not yet led to significant bearish sentiment, the collective actions of these short-term holders could put pressure on the FET price. If the market turns and these investors begin to liquidate their positions, this could create downward pressure, causing the FET price to temporarily fall before any sustained rally occurs.
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From a technical perspective, the ASI token is showing signs of gaining bullish momentum. The 50-day and 200-day exponential moving averages (EMA) are on the verge of forming the Golden Cross, a bullish indicator that could signal the end of the current Death Cross, which has been active since mid-July. This potential shift is likely to strengthen market confidence in FET, setting the stage for further price increases.
The Death Cross has kept the market cautious over the past few months, but the possible formation of a Golden Cross could reverse this trend. If confirmed, this would mean the long-term price outlook for FET turns positive, reinforcing a more bullish macro trend for the cryptocurrency.
FET Price Forecast: Aiming for Rally
Since CUDOS joined ASI, FET has seen a 14% increase in the last week. Despite this rise, investor sentiment remains cautious, which is reflected in the broader bearish sentiment in the market. FET is currently trading at $1.46, indicating that while the news has provided momentum, it has yet to generate significant growth.
The altcoin maintains its position above the three-week uptrend support line despite resistance at $1.71. These mixed signals, coupled with broader market conditions, suggest FET could consolidate below this resistance while maintaining support near $1.40. This consolidation phase can provide stability, giving the altcoin a chance to regain momentum.
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However, if FET can break through the $1.71 resistance and turn it into support, it will set the stage for a potential rally. If this happens, the FET price could rise to $1.95, a 33% increase. A breakout of this level could invalidate the current bearish outlook, setting the stage for the altcoin to reach the psychological $2.00 barrier.
