The recent price action paints a bearish picture for FET, with the Relative Strength Index (RSI) indicating further declines are likely. With the RSI moving into bearish territory, momentum appears to be favoring sellers, raising fears of a deeper pullback.
Amidst increasing bearish pressure, attention is turning to the critical support level of $0.9. Maintaining this level is crucial to avoid additional losses, as a breakout could lead to larger declines.
With current market sentiment pointing to the possibility of further losses, this article aims to analyze the ongoing bearish extension in the FET, focusing on how the RSI is signaling increased bearish pressure. By examining key technical indicators and market trends, this article will explore whether FET is likely to see further declines or whether any potential support levels could trigger a rebound.
The RSI indicates increasing downward momentum for FET
FET recently turned into bearish territory on the 4-hours chart, sliding below the 100-day simple moving average (SMA) and heading towards the critical support level of $0.9. A drop below the 100-day SMA indicates weak momentum, with sellers in control of the market.
Analysis of the RSI on the 4-hours frame reveals that the signal line has fallen below 50%, and is currently at 37%, reflecting increasing selling pressure and decreasing buying interest. With the RSI in this zone, this indicates the potential for further downward movement for the FET, highlighting the lack of bullish conviction in the market.
Moreover, the FET on the daily chart is showing negative momentum after struggling to break above the $1.8 resistance level. This struggle is highlighted by the formation of multiple bearish candlesticks, which indicates ongoing selling pressure in the market. Although the price remains above the 100-day simple moving average, which typically indicates an uptrend, the inability to break through the resistance at $1.8 suggests that optimistic strength is weakening, and FET may be poised for extended losses.
A closer examination of the RSI formation on the daily chart indicates that the RSI signal line has fallen to 44%, and has recently fallen below the important 50% threshold. Typically, an RSI reading below 50 indicates a bearish sentiment, indicating that the asset is losing strength. Such a decrease could indicate possible deeper corrections of the FET unless inversion is observed.
Key support levels to watch amid bearish sentiment
With bearish sentiment spreading through the market, the $0.9 support level has become particularly important for FET. A break below this level could ignite increased selling pressure, which could send the price falling towards the $0.4 support mark and beyond.
If FET can maintain its strength and stay above the $0.9 support level, it could pave the way for a bounce, allowing the price to drift back towards the $1.8 resistance area. A successful breakout above this key resistance level could lead to increased buying activity, leading to further gains as upward momentum builds. Monitoring how the FET reacts to these levels will be crucial, as it will indicate whether a recovery is on the horizon or whether downward pressure will reassert itself.