Key Takeaways:
- Fetch AI price has rallied over 50% in the last two weeks.
- However, the gains have left the FET crypto in an overbought state.
- Coupled with other technical indicators, the token’s analysis hints at correction.
YEREVAN (CoinChapter.com) — Fetch AI (FET) price has rallied 55% in two weeks and was trading for $0.25 per token on Aug. 31. As a result of its rally, many analysts have started predicting that the token would extend its gains further in 2023.
For instance, an independent market analyst, ‘David the Crypto Bull,’ sees the FET coin price hitting $2.50 by next year based on a cup-and-handle technical analysis. Another chartist, dubbed ‘Cold Blood Shiller,’ hinted at bullish continuation, citing FET’s decisively close above a descending trendline resistance.
$FET continuing to show strength through the night, which makes it a nicer morning to wake up to. https://t.co/OUW9Iac591 pic.twitter.com/o9HJOQyzr3
— Cold Blooded Shiller (@ColdBloodShill) August 31, 2023
Nonetheless, these gains may not come in September. Instead, per several indicators, the FET token price may start correcting in the month.
Fetch AI Coin Price Hits Key Distribution Zone
On Aug. 30, FET coin attempted to close above a resistance confluence comprising its multi-month ascending trendline and 200-day exponential moving average (200-day EMA; the blue wave in the chart below). However, the Fetch AI token failed, leaving behind a candlestick with a huge upside wick.
That coincides with FET’s daily relative strength index (RSI) treading near its overbought level. Overall, the resistance confluence and nearly overbought RSI hint at a potential FET coin price correction in September.
Suppose it happens. Then, the Fetch AI price may decline toward its ascending trendline support and 50-day EMA (the red wave) near $0.20. Simply put, an approximately 20% drop by September.
Fetch AI Whales Accumulate, Nonetheless
On a brighter note, Fetch AI’s richest investors recently showed interest in buying FET tokens.
For instance, the FET coin supply held by addresses with a 10,000-10,000,000 token balance increased during its price rise, showing most cohorts supported the rally. On the flip side, the supply held by the 10 million-100 million FET coin cohort dropped (they could be exchange withdrawals).
Whale accumulation hints at rich investors’ conviction about a bullish continuation.
