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FETCH.AI

Fetch.AI (FET) is another highly promising AI-focused token, similar to Render. Its strong narrative within the AI sector has driven significant attention and market momentum. However, we believe FET is currently within an ending diagonal pattern, signaling the final stages of a bullish macro wave.

Technically, the chart suggests a potential top around $8, but we find this unlikely due to the challenges of maintaining sufficient momentum to achieve this level. Despite this, we remain confident in holding our position as the overall structure remains bullish.

In the short term, FET is trading near the lower boundary of the ascending diagonal, which we expect to act as a support zone, leading to a bullish trend resumption in the coming weeks.

Detailed Observations

  1. Ending Diagonal Structure
    • The current price action indicates an ending diagonal pattern, characterized by overlapping waves and a narrowing channel.
    • This pattern often marks the final phase of a bullish trend, with price action becoming increasingly constrained before a breakout or reversal.
    • FET appears to be in Wave V of this diagonal, with the lower boundary providing strong support.
  2. Fibonacci Levels
    • Key retracement levels have provided reliable support during previous corrections:
      • 0.618 ($0.746) and 0.5 ($0.459) were crucial in Wave IV’s retracement.
      • These levels remain critical in the event of deeper corrections within the diagonal.
  3. Projected Targets
    • While the diagonal pattern technically points to a top around $8, achieving this target will require substantial bullish momentum, which we find difficult to envision in the current market conditions.
    • A more realistic target might be the $6-$7 range, aligning with prior resistance zones and the projected completion of Wave V.
  4. Current Support Zone
    • FET is trading near the lower boundary of the diagonal, suggesting a potential bounce in the short term.
    • This level is critical for maintaining the bullish structure and should result in a trend reversal toward the upper boundary of the channel.

Key Points to Monitor

  1. Reaction to the Lower Boundary:
    • A sustained bounce from the current support zone would validate the diagonal structure and signal the start of the final bullish push.
  2. Breakout Potential:
    • A breakout above prior highs near $3 would confirm the resumption of the uptrend and set the stage for a move toward $6-$8.
  3. Invalidation Level:
    • A breakdown below the lower boundary (near $1.20) would invalidate the diagonal structure and suggest a deeper correction.

Conclusion

From our perspective, Fetch.AI remains in a promising position within its macro trend. While a technical top around $8 is possible, we view a target in the $6-$7 range as more realistic. The current trading range near the lower boundary of the ascending diagonal provides a favorable setup for a bullish reversal in the coming weeks.

We remain committed to our position, anticipating a return to bullish momentum and the completion of the diagonal pattern. Let us know if further analysis is needed!