- FET dropped from its multi-month support zone of $0.57–$0.60, confirming bearish momentum through a descending triangle breakdown.
- A sharp rebound followed the breakdown, with FET recovering to $0.375 but facing resistance near the previous support at $0.40.
- Analysts suggest the flash crash was a potential wave completion.
Fetch.ai (FET) quickly bounced back to $0.375 after falling from $0.57 to $0.113. Despite the recovery, selling pressure is still strong, and traders still remain cautious for they are unsure of the next possible move.
Breakdown from Key Support Confirms Bearish Trend
Analyst Alpha Crypto Signal pointed to a descending triangle breakdown on FET, which played out as expected. The breakdown from the $0.57–$0.60 support zone triggered intense selling pressure, confirmed by a red volume spike on the daily chart.
This collapse sent FET down to $0.113 at its lowest point, following a steep drop from consolidation. The move matched the projected bearish scenario, where failure to hold the support led to a cascading sell-off. Despite the severity of the drop, the technical structure maintained its pattern-based predictability.
The current price is below the 9-day EMA at $0.446 and the 50-day SMA at $0.593 . A series of lower highs along a descending trendline have been forming from the April peak.This divergence indicates a bearish trend in place,
Technical Rebound and Resistance Zones Identified
Attempts to reclaim $0.40 failed, creating a bearish retest scenario, which analysts labeled as a post-breakdown rebound. The recovery attempt lifted the price to reach around $0.375.This area is viewed as critical for short-term direction.
Sustained stability above the $0.34 and $0.36 zone could shift back momentum to a bullish bias, but caution remains due to ongoing volatility.Trading levels have since subsided but volume activity remained strong during the decline and rebound.
Any breakdown below $0.30 could expose FET to further losses, and without a decisive move above the $0.45–$0.50 range, the market structure continues to lean bearish.
Alternative Wave Count and Flash Crash Analysis
Crypto Wave Vision provided another perspective, noting that the move may have marked the end of a five-wave decline, with a bottom near $0.19. The analyst viewed this level as unexpected, considering the earlier rally’s strength but remains cautious.
The flash crash on October 11 drove FET down from $0.45 to $0.28 , a 35% drop within hours. This fall was accompanied by a high volume likely caused by panic selling or internal developments, such as token migration concerns.
While a relief bounce to $0.40 occurred, the failure to sustain that level showed weak momentum. The analyst is monitoring the $0.27 zone for a potential wick fill. A lack of strength from this point may invalidate the structure entirely, leaving FET vulnerable to another breakdown.
