FET Price Tests Crucial Support—Potential Reversal or Further Decline?

• Fetch.ai (FET) is testing a crucial support zone between $0.69 and $0.79, a level that has historically triggered strong price rebounds.
• Bollinger Bands and stochastic RSI suggest oversold conditions, increasing the likelihood of a price recovery if support holds firm.
• If FET maintains support, a move toward $1.35 is possible, while a breakdown could push prices toward the $0.50-$0.55 range.

Fetch.ai (FET) is testing a crucial support level between $0.69 and $0.79, a zone that has historically acted as a strong demand area. Market participants are closely watching whether the price will hold above this level or break down, which could influence its next move.

Key Support Zone at Critical Levels 

Ali, a well-known market analyst, pointed out in a tweet that FET is testing a major support range. This price region has previously served as a strong floor for bullish reversals. If buyers step in and defend this level, a potential rebound toward higher resistance levels could occur. Conversely, losing this support could lead to further downside, with the next key support levels around $0.50-$0.55.

Technical Indicators Suggest a Rebound 

Bollinger Bands indicate that FET is currently at the lower boundary, suggesting oversold conditions. Historically, price movements from this level have resulted in mean reversion toward the middle Bollinger Band, currently positioned at $1.346. 

Additionally, the Stochastic RSI shows deeply oversold readings, with the %K and %D lines near the lower threshold. This suggests that selling pressure may be subsiding, potentially paving the way for a bullish crossover and price recovery.

Potential Scenarios

The price movement of FET towards $1.35 is possible when support levels stay within $0.69 to $0.79. The price may advance to reach the $2.00 zone when investors successfully break through the resistance level. The sustained inability to sustain support levels could lead to a downward movement that could reach between $0.50 and $0.55 space despite weak buying activity.

At the time of writing, FET’s market price was at $0.7954 as the cryptocurrency has increased 1.66% over the last 24 hours and achieved a 0.99% gain during the previous seven days.