Fetch AI (FET) : Buying Opportunity or a Warning?
The current Fetch AI price has recently flashed a buy signal for FET, the token from the Artificial Superintelligence Alliance. However, investors should be aware that there’s a risk of a further 50% drop before any potential recovery. Despite signs of undervaluation, increasing selling pressure complicates the outlook.
For a more in-depth analysis and detailed price predictions, be sure to read our full article on Fetch AI price prediction.
Recent Trends in FET
Since September 25, FET has been on a downward trajectory, losing 9% of its value. For investors looking for buying opportunities, this decline might seem enticing. However, technical indicators suggest that the token could still fall significantly before any upward movement occurs.
MVRV Ratio: An Undervaluation Indicator
The market value to realized value (MVRV) ratio is crucial for assessing FET’s potential. Currently, both the 7-day and 30-day MVRV ratios stand at -51.03 and -10.81, respectively. A negative MVRV ratio indicates that FET is trading below the average price paid by most holders, meaning that if they sold now, they would incur losses.
Historically, a negative MVRV ratio has suggested that an asset is undervalued and may be poised for a rebound, presenting an opportunity for savvy traders to buy low and sell high.
The Risk of Further Decline
While the negative MVRV ratio may point to a buying opportunity, potential investors should exercise caution. The technical setup for FET suggests that it may experience a continued decline.
The moving average convergence/divergence (MACD) indicator, analyzed on a one-day chart, indicates strengthening selling pressure. Currently, the MACD line (blue) is below the signal line (orange) and is expected to cross below its zero line soon. This crossover implies that the downward momentum is gaining traction, indicating that selling pressure is increasing in the market.
In summary, FET has presented a potential buying opportunity due to its undervaluation. However, the increased selling pressure and technical indicators suggest that investors could face further declines before any recovery. It’s essential for traders to weigh these factors carefully when considering their next move in the market.
