Fetch.ai's native token FET has unexpectedly dropped to a five-month low just days before the highly anticipated Artificial Superintelligence (ASI) merger. While many investors expected price appreciation leading up to the merger, FET instead followed the broader market downturn.
With less than 72 hours remaining until the merger completes on July 15, this price dip may present a final accumulation opportunity for strategic investors.
Key Metrics Suggest FET May Be Undervalued
The current FET price of $1.04 shows several technical indicators of being oversold:
- MVRV Ratio at -15%: The Market Value to Realized Value ratio indicates FET investors are experiencing significant unrealized losses. Historically, FET has rebounded strongly when MVRV reaches these levels (-10% to -32% range).
- MACD Showing Bullish Potential: FET's Moving Average Convergence Divergence indicator appears poised for a bullish crossover above the zero line, often preceding price recoveries.
- Double Bottom Pattern Forming: This technical formation frequently signals impending bullish reversals when appearing after sustained declines.
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Price Prediction: What's Next for FET?
In the immediate term, FET will likely consolidate between:
- Support Level: $1.04 (current price)
- Resistance Level: $1.71 (previous consolidation zone)
The ASI merger could serve as a catalyst for breakout potential:
- Neutral Scenario: FET remains range-bound between $1.04-$1.71 as markets await merger outcomes
- Bullish Scenario: Successful merger execution drives AI sector enthusiasm, pushing FET above $1.71 resistance
- Bearish Scenario: Broader market conditions override merger optimism, testing lower support levels
Frequently Asked Questions
Why did FET price drop before the merger?
The decline resulted from broader market corrections outweighing merger anticipation. Many altcoins experienced similar pullbacks regardless of project developments.
Is now a good time to buy FET?
Current technical indicators suggest FET may be undervalued, though investors should consider both the merger's potential benefits and overall market conditions.
What price targets should FET investors watch?
Key levels include the $1.71 resistance (breakout point) and $1.04 support (current price). A sustained move above $1.71 could signal renewed bullish momentum.
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Strategic Considerations for FET Investors
The coming days present unique dynamics for FET:
- Last Pre-Merger Accumulation Window: The final hours before the ASI merger completion may offer the last chance to acquire FET at current levels
- Post-Merger Volatility Potential: Historical precedent suggests major token events often trigger short-term volatility before establishing new trends
- AI Sector Momentum: FET's performance may increasingly correlate with broader artificial intelligence cryptocurrency sector movements
Investors should weigh these factors against their risk tolerance and investment horizons when considering FET positions. As always in cryptocurrency markets, maintaining balanced portfolios and practicing risk management remains crucial.