Fetch.ai Hoping Nvidia Magic Might Save FET From The Abyss

NOIDA (CoinChapter.com)— Fetch.ai (FET) experienced notable price fluctuations recently. The token’s value dipped to $1, highlighting the bearish pressure against it. Adding to the volatility, the Artificial Superintelligence Alliance (ASA) announced a revised timeline for the much-anticipated token merge.

The move aims to enhance the ecosystem’s efficiency and interoperability, further integrating AI capabilities across various platforms.

FET prices recovered sharply on June 19, likely fueled by Nvidia’s recent growth that saw the company become the world’s most valuable company. Despite these efforts, the AI crypto token’s price remains under pressure, reflecting broader market dynamics and investor sentiment.

Nvidia Hype Could Help FET Avoid

The Fetch.ai token price moves within a ‘descending channel‘, with clear resistance at $1.57 and primary support at $1.00. The pattern, marked by parallel trendlines, indicates a continuation of bearish sentiment unless significant buying pressure emerges.

The recent increase in trading volume during price declines highlights strong selling pressure, underscoring the need for a careful evaluation of support and resistance levels.

Nvidia has recently become a focal point in the market, with its valuation reaching an astounding $3.3 trillion. This surge can be attributed to several key factors. Firstly, Nvidia reported record-breaking quarterly revenues, driven primarily by its data center and AI-related businesses.

In the first quarter of 2024, Nvidia posted a revenue of $13.5 billion, a 50% year-over-year increase, with its data center segment alone contributing $7.5 billion.

Moreover, the global demand for AI and machine learning applications has skyrocketed. Nvidia’s GPUs are central to the AI revolution, powering everything from data centers to autonomous vehicles.

However, despite this positive sentiment, Fetch.ai’s technical indicators suggest caution. The token must break above the $1.57 resistance convincingly to signal a potential bullish reversal. A rebuttal from the channel’s upper trendline could push FET prices downwards.

Traders should closely monitor the $1 support level, as a breach could lead to further declines.

The broader enthusiasm surrounding Nvidia’s advancements could serve as a catalyst for renewed interest in AI-related cryptocurrencies, but market participants should remain vigilant and base their decisions on confirmed signals and volume patterns.

Bullish Pattern Could Help FET Recover

Meanwhile, FET price has formed a bullish technical pattern called the ‘falling wedge.’

A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.

The pattern indicates that an asset’s price while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs upward, in line with the overall trend.

To estimate the price target, traders measure the widest part of the wedge at the beginning and project this distance upward from the breakout point. A higher trading volume during the breakout confirms the reversal’s reliability, indicating stronger market conviction and a higher likelihood of success.

According to the rules of technical analysis, FET price might rally over 153% from its current level to reach the pattern’s projected target near $3.9.

However, the token is currently testing the support trendline of the pattern. Hence, bulls must capitalize on the Nvidia hype to ensure Fetch.ai does not invalidate the pattern.