Fetch.AI (FET) Eyes Breakout as Key Support Holds Strong, Analyst Targets $3.50 in Bullish Setup

• Fetch.AI forms a bullish wedge, with strong support near $0.80 and potential breakout targets up to $3.50.
• Moving averages act as strong resistance, with a death cross confirming bearish sentiment since early May 2024.
• Price consolidates near $0.82, requiring a break above $1.08 and $0.98 to signal potential bullish reversal.

Crypto analyst @DrProfitCrypto has pointed out developments in Fetch.AI (FET). His recent analysis indicates a potential breakout as FET approaches a critical support level, with notable patterns forming on multiple timeframes. The ongoing price action hints at important moves ahead, based on the current technical setups.

Key Indicators Suggest Potential Reversal

Fetch.AI’s price action has exhibited a downward wedge formation on the three-day chart, a well-known bullish reversal pattern. Notably, the wedge shows converging trendlines, indicating potential price compression. 

Support has been identified near the $0.80 level, a zone that previously held strong in November 2023. This support region is reinforced by a 99-week moving average (MA), which has bounced the price back up, as seen recently. Furthermore, the Relative Strength Index (RSI) indicates oversold conditions, hinting at a possible reversal.

Market analysts have marked several target levels for a potential upward movement, with the first take-profit (TP1) level near $1.50. Subsequent targets are positioned higher, reaching as much as $3.50 (TP4). Additionally, the 200-day exponential moving average (EMA) has emerged as a support area, often influencing price action when tested.

Moving Averages Pose Key Resistance

While the price hovers around $0.82, Fetch.AI remains in a prolonged downtrend since March 2024. On a four-hour timeframe, the price continues to trade below the 50-period (MA50) and 200-period (MA200) moving averages. 

These levels have functioned as dynamic resistance, with multiple attempts to surpass them proving unsuccessful. A “death cross” occurred when the MA50 crossed below the MA200, marking a bearish signal. Since then, the price has remained beneath both moving averages, which still present strong resistance.

Consolidation Period Underway

August 2024 has seen Fetch.AI’s price consolidating near $0.82, indicating potential stabilization after months of decline. However, for a bullish reversal to take place, the price must overcome key resistance levels. 

Breaking through the MA50 and MA200, currently positioned around $1.08 and $0.98, would be critical for any sustainable upward movement. Until these resistance levels are cleared, the bearish trend may persist, keeping further downside risks in play.