FET Token Analysis: Price Correction After 600% Gains in 2023

FET’s Current Market Performance: Understanding the 2024 Bearish Trend

The Fetch.ai platform’s native cryptocurrency, FET, has been stuck in a bearish trend so far this year.

FETUSD has dropped over 50% YTD on Binance. That said, after racking up robust gains in 2024 (more than 90%) and a bull run in 2023 (over 600%), the current pullback looks like quite a natural correction for this token.

Analysts still view FET as a growth asset. Going forward, the token’s price action will largely hinge on broader investor interest in artificial intelligence, as well as key developments on Fetch.ai itself.

Technical Analysis: Key Resistance Levels and Breakout Scenarios

From the TA standpoint, the bears currently remain in command, although the bulls stand a chance of making a comeback.

On the weekly timeframe, the regression channel reveals an upward bias. The token recently broke above its 200-day MA before pulling back.

The next key upside target sits at USD 0.78, the 200-day MA that typically acts as dynamic resistance.

It is also aligned with the 23.6% Fibonacci retracement level.

A breakout above this resistance would open the door toward the next target at USD 1.05, which corresponds to the 38.2% Fibonacci retracement.

A sustained breakout to the upside would mark a serious attempt to extend the uptrend.

Even if the bulls fail to clear resistance on the first attempt, they could still regain the upper hand further down the road.

Elliott Wave Perspective: Triangle Formation and Wave Projections

From an Elliott Wave perspective, the price action currently shows the formation of a narrowing triangle consisting of five corrective waves.

Each of these waves in the A-B-C-D-E sequence consists of three monowaves.

If our price points on the chart are accurate and the market is now in the early stages of wave D, only two corrective waves (D and the final E) still remain before the triangle is breached.

Looking ahead, three monowaves should emerge, with two of them expected to slope higher and one lower.