Posted: November 29, 2024

• FET’s breakout from a descending channel and a potential breakout above $1.67 could push prices to $2.56.
• On-chain signals and rising open interest point to a sustained bullish outlook, supporting further price gains.

The Artificial Superintelligence Alliance [FET] recently announced plans to launch an Earn-and-Burn mechanism in December, which will involve burning up to 100 million tokens to reduce supply and potentially boost price.

Following this news, FET saw a 9.19% jump, trading at $1.62 at press time. The question on everyone’s mind: can this rally continue, and what does the technical outlook suggest for FET’s future?

Is FET breaking out of Its downtrend?

FET has recently broken free from a descending channel, a move that typically signals a change in market momentum. This breakout is promising, suggesting that the token may be entering a more bullish phase. 

FET is currently testing a key resistance at $1.67. If the token can break through this level, a push towards $2.56 becomes a realistic target. With the RSI at 60.45, FET is not yet in overbought territory, which leaves room for further price movement.

What does the MVRV ratio indicate about investor behavior?

The MVRV ratio for FET is at -86.12%, signaling that many holders are at a loss. While this might seem concerning, it can also point to an undervalued asset, potentially setting the stage for a price rebound.

Therefore, the current negative MVRV ratio could represent an opportunity for long-term investors looking for a price recovery.

How are on-chain signals supporting the bullish outlook?

The on-chain metrics provide a generally bullish picture. Net Network Growth has decreased slightly by 1.97%, but this is not a major concern given the overall market sentiment.

More importantly, other key signals are strongly bullish: Into the Money stands at 13.36%, meaning a large portion of FET holders are in profit. 

Additionally, large Transactions have risen by 7.44%, indicating growing institutional interest. Additionally, Concentration is at 0.10%, signaling that investors are accumulating tokens. These factors collectively suggest strong support for FET’s price momentum.

Is market sentiment shifting in FET’s favor?

Market sentiment is increasingly bullish. The open interest has surged by 10.38%, reaching $156.26M, a clear indicator that traders expect further price gains. This uptick in open interest suggests that the market anticipates more upside for FET, especially with the upcoming token burn.

Read Artificial Superintelligence Alliance’s [FET] Price Prediction 2024 – 2025

Given the strong technical breakout, positive market sentiment, and bullish on-chain signals, FET is well-positioned for continued price appreciation.

The recent surge in open interest reflects growing investor confidence, and if FET can break through the $1.67 resistance, a move toward $2.56 is highly probable. Therefore, the rally seems likely to continue, but investors should keep an eye on key resistance levels for confirmation.