Fetch.ai [FET] has slipped into one of the more bearish positions in the market as broader market sentiment continues to weaken.
Although FET has declined by 11%, trading activity has intensified sharply. Volume surged by 145% to approximately $145 million, signaling heightened market participation.
This divergence between price and volume suggests that the decline may be part of a broader market readjustment, with bulls positioning at lower levels ahead of a rebound.
Accumulation and buying remain active
The ongoing market pullback has not been fully reflected in key technical indicators, which continue to point toward sustained buying interest.
The Accumulation/Distribution (A/D) indicator, which gauges whether investors are broadly accumulating or distributing FET, remained skewed toward accumulation.
This suggested that buyers continued to dominate despite the price weakness.
Data from the 4-hour chart further supported this view, showing that total traded volume climbed steadily, with accumulated FET reaching approximately 697 million tokens at press time.
Source: TradingView
Similarly, the Chaikin Money Flow (CMF), which tracks capital inflows and outflows, indicated that buyers still control market momentum.
Measured on a scale from -1 to 1, with 0 representing neutrality, the CMF sat at 0.09 at press time.
This positive reading reinforces a bullish undertone and suggests that continued buying pressure could position FET for a rebound, even as sellers remain active in the short term.
Doji formation hints at upside potential
The price chart shows that FET has formed a dragonfly doji—a T-shaped candlestick pattern that often signals a potential reversal during a downtrend.
This formation emerged after FET endured a pronounced market decline, printing multiple lower lows over several consecutive sessions.
The doji aligns with broader technical indicators that point toward a possible recovery. However, meaningful upside will depend on FET’s ability to clear several critical resistance levels.
Source: TradingView
The first major hurdle sits at $0.27, a level that previously acted as price support. A successful reclaim of this zone, followed by consolidation above it, would provide the initial signal that trader confidence is returning.
Beyond that, the next key resistance lies near $0.31, the level that marked the previous market peak before the decline accelerated. A decisive move above this zone, accompanied by higher highs, would suggest that traders are fully re-entering positions with a longer-term outlook.
Between the $0.27 resistance and the $0.34 peak, two intermediate resistance zones remain significant and could slow upward momentum. A clean break through this entire range remains the primary objective for a sustained rally.
AI market overview
More broadly, the artificial intelligence segment of the crypto market—where FET is categorized—has underperformed in the short term.
Total market capitalization for AI-related tokens has declined by 1.79% to $19.64 billion, extending a downturn that began around January 15. This short-term weakness reflects broader market caution rather than isolated asset-specific pressure.
From a longer-term perspective, however, the AI token market remains structurally strong. Market capitalization is still up 16.59%, with trading volume holding at $3.34 billion.
Source: CoinMarketCap
FET’s current price action may reflect a similar pattern—a short-term correction within a broader long-term re-adjustment. With accumulation metrics strengthening and reversal signals forming on the chart, the setup suggests that downside pressure could eventually give way to renewed bullish momentum.
Final Thoughts
- FET accumulation and buying volume continue to rise amid the downturn.
- Chart patterns suggest rebound potential, though key resistance levels lie ahead.
Source: https://ambcrypto.com/heavy-selling-hits-fet-yet-buyers-refuse-to-back-down/
