- FET took a little nap after a bearish divergence, but it’s gearing up for its next big laugh… I mean, rally!
- A short-term chill around $0.8 seemed like a good idea too, you know, to catch its breath.
Artificial Superintelligence Alliance [FET], the $2 billion market cap token of the AI consortium, was looking pretty bullish on the charts, like it just got a good joke. 🤣
The altcoin market has been doing the horizontal tango for nearly two weeks, but Bitcoin’s [BTC] breakout into all-time high territory could be the punchline that sends the market into a frenzy. 🚀
FET’s 1-day chart showed a bearish divergence (white) on the MFI. This was followed by a price pullback from $0.9 on 10 May to $0.7 nine days later. This retracement was like a retest of an important horizontal level, like checking if the floor is still there. 🕵️♂️
The Fixed Range Volume Profile plotted from late January revealed that the Value Area High was at $0.75. This level coincided with the lower high set in early March. FET’s reclamation of the $0.75 zone as support over the past three weeks was a statement of intent on the higher timeframes, like it was saying, “I’m not going down without a fight!” 🤘
The MFI had cooled down and was near neutral 50, at press time. This suggested that there may be plenty of space for the price to expand higher. In fact, a move higher appeared likelier than a deeper retracement. It’s like FET is saying, “I’ve got more jokes to tell!” 😂
The $0.75 level’s importance as support suggested that once reclaimed, it would not be yielded immediately to the sellers. Another big clue came from the OBV’s trend. The OBV has been climbing higher over the past two months, like it’s on a mission to reach the top of the mountain. 🏔️
Although this trend slowed down in May, the OBV has not made lower lows on the 1-day timeframe. Hence, sustained demand might be present, and the AI token could likely climb higher too. It’s like FET is on a comedy tour, and the audience is loving it! 🎤
A potential short-term range formation?
The 1-week liquidation heatmap showed that the cluster of liquidity that had built up at $0.81 over the past five days had been swept. A move to $0.83 was followed by a drop to $0.77, indicative of a liquidity hunt. It’s like the market is playing hide and seek with the liquidity. 🕵️♀️
Some overeager short sellers have been wiped out too. The next pocket of liquidity overhead lay at $0.835, reaching up to $0.855. To the south, another pocket of liquidity lay at $0.76, just below the local lows. It’s like the market is setting up a trap for the bears. 🐻
Hence, it seemed likely that FET would form a range around the $0.77-$0.81 zone to allow liquidation levels to be built up in both directions. Liquidity engineered like this can then be swept before FET embarks on its next impulse move. It’s like FET is getting ready for its big finale! 🎉
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2025-05-22 10:29