After holding onto the $1 market for months, the Artificial Superintelligence Alliance (FET) price has fallen below the threshold. This decrease follows a challenging crypto market that has seen altcoin prices plunge to levels not seen in a long time.

As of this writing, FET, formerly known as Fetch.ai, trades at $0.71, representing a 78.32% decline from the all-time high it reached in March.

Not a Super Season for Artificial Superintelligence Alliance 

According to Santiment, while the altcoin’s price dropped, its trading volume surged dramatically. Crypto trading volume measures the total value of tokens traded over a specific period.

For FET, the volume increased by 245% in the last 24 hours, rising close to $300 million. This rise indicates a lot of buying and selling around the AI-themed token.

Typically, rising volume alongside increasing price strengthens an uptrend. However, in FET’s case, the drop in price and sharp rise in volume indicate intense selling pressure, suggesting another downturn.

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This decline may surprise FET holders who expected a price increase from the ASI merger, a union of three cryptocurrencies. The merger led to an increased circulating supply, which typically raises market capitalization since it’s a product of price and tokens in circulation.

Even though the merger is incomplete, FET’s market cap reached $3.32 billion on July 27. By press time, the token had lost a significant portion of its value, dropping to $1.78 billion.

FET Price Prediction: Key Support Level Broken

According to the daily chart, bulls had camped at the $1.05 support up until August 2, when they lost hold of the region. FET price continues to witness weakness as a result of this development.

Furthermore, BeInCrypto observed that the token trades below the 20-day Exponential Moving Average (EMA). The EMA measures trend direction, and when the price of a cryptocurrency trades above it, the trend is bullish.

However, the fact that it changes hands below the indicator suggests that the trend is bullish. Should this remain the case, FET’s price may continue to slide downwards. 

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If current market conditions remain the same, the cryptocurrency’s value may drop to $0.69. However, if buying pressure increases, FET could return to $1.