Fetch.AI (FET) continues to demonstrate an intriguing structure, trading within a long-standing ascending channel that has defined its price action. Based on our analysis, FET has the potential to establish a new local high around $6, completing its current wave cycle.
Elliott Wave Structure
- Channel Movements: Each movement within this channel has been corrective in nature, forming distinct ABC patterns. These three-wave structures are characteristic of channels in Elliott Wave theory.
- Current Progression:
- The Wave (a) within the ongoing ABC sequence appears to have completed near current levels (~$1.8).
- A Wave (b) retracement is expected next, potentially testing support near the channel’s midline or lower boundary.
- This will likely be followed by a strong impulsive Wave (c), which could target the $6 region before facing significant resistance.
Technical Projections and Levels
- Resistance Zone: The upper boundary of the ascending channel near $6 remains a key target. However, we do not anticipate FET reaching the extreme upper trendline (~$9.50), barring significant external catalysts.
- Fibonacci Projections for Wave (c):
- 1.0 Extension: $6.00 (primary target)
- 1.618 Extension: $7.20 (possible overshoot)
- Support Levels (Wave b):
- Near-term support is expected at $1.50–$1.70, aligning with the channel’s midline.
Key Observations
- Channel Dynamics: The price has respected the channel boundaries for an extended period, and movements are likely to continue oscillating within this structure. The current breakout attempt from Wave (a) signals a continuation of bullish sentiment.
- RSI and Momentum: RSI remains neutral but shows signs of divergence. This suggests that a Wave (b) retracement is necessary to reset momentum before the final Wave (c) move.
- Volume Dynamics: The declining volume during Wave (a) indicates corrective behavior, supporting the hypothesis of an upcoming impulsive Wave (c).
Outlook and Strategy
While the exact trajectory of FET depends on broader market conditions, the following scenarios are likely:
- A Wave (b) pullback will offer a strategic entry point for investors seeking to ride the Wave (c) move toward $6.
- Conservative traders may wish to secure profits around $5–$6, as the upper channel boundary is unlikely to be breached without significant momentum.