YEREVAN (CoinChapter.com) — Fetch.ai (FET) coin price jumped 22% to $0.72 in the previous 48 hours, in unison with Bitcoin’s price action. However, the coin’s daily chart hinted at a 12% drop ahead. Here are more details on why the FET price could be reversed.
FET Retested Key Resistance
On Dec 20 FET coin price approached a key resistance at $0.72, temporarily rising above it in the European session. However, it is too soon to tell if the FET bulls can push the coin above the said line. If not, a 12% drop to a previous resistance/support might be in the books.
Meanwhile, the token’s trading volumes declined in the previous days, backing the short-term bearish assumption. As seen in the chart below, the trading volumes peaked at $233 million on Dec 13, and have dropped to $50 million since.
While trading volumes alone don’t indicate a bias, combined with the recent price surge they show high interest in the FET coin. Conversely, a drop in trading volumes during a bullish phase might hint at a looming selloff. Additionally, the relative strength index (RSI) also backed pointed to a bearish correction.
In short, the RSI is a gauge of profitable market entry and exit points. A bearish RSI divergence occurs when the price of a security makes higher lows, but the RSI makes lower lows, suggesting a potential reversal from an uptrend to a downtrend.
The FET coin price does not exist independent of market sentiment. The recent price uptick could be a result of the overall bullish streak among cryptocurrencies. However, developments in the Protocol could also help in determining the future Fetch.ai vector.
Fetch.ai Announced New Collaborations
In short, Fetch.ai is an interchain protocol that allows users to create networks of autonomous economic agents within a single ledger. On Dec 19 the protocol announced collaborations with Graph Cast, a weather forecasting system based on machine learning and Graph Neural Networks (GNNs), and Google Deep Mind.
This integration exemplifies the robustness & adaptability of our AI Agent technology! It’s not just about integrating cutting-edge tools; it’s about enhancing and incentivizing your solutions with diverse, innovative technologies.
read the announcement.
Earlier this week Fetch.ai also announced a “strategic partnership with Singularity NET, a decentralized AI marketplace, to “tackle some of AI’s biggest challenges.” This partnership focuses on overcoming large language model (LLM) hallucinations and enhancing multi-step reasoning.
In the context of LLMs, a “hallucination” refers to a phenomenon where the model generates text that is incorrect, nonsensical, or not real.
