Reasons Why FET Price Plunged 25% This Week; Sell or HODL

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Reasons Why FET Price Plunged 25% This Week; Sell or HODL – Crypto News

Published

1 year ago

July 3, 2024

Dripp

Fetch.ai (FET) has recently gone through a rebranding process and has changed its name to Artificial Superintelligence Alliance as a part of its multi-token merger program. However, in contrast to the expectation, the FET price has witnessed a drop, currently trading at $1.29. It has dropped more than 4% in the last 24 hours, continuing the month’s drop of 40%.

In this blog, let us discuss why the FET price is dropping and whether it can recover or not.

ASI Merge Enter Phase 1 Leading To FET Price Dop

Earlier in May, the popular figures of the AI industry, Ben Goertzel, Nick White, and Toufi Saliba, came together to form the Artificial Superintelligence (ASI) alliance by merging the three most popular AI tokens of the industry, which are Fetch.ai, SingularityNet, and Ocean Protocol. It was in an attempt to offer better opportunities and shape the future of AI by building the best AI system.

As an initiation of the first phase, the SingularityNet and Ocean protocol delisting has begun on various cryptocurrency exchanges along with the hold on the deposit and withdrawal of these tokens. Fetch.ai has rebranded itself, causing selling pressure on the token and impacting the FET price.

Since the official sharing of the merger on July 1, the FET price has dropped from $1.44 to $1.29. But this is not the first time the merger news has impacted the price. Earlier, when the Merge got delayed due to a technical defect, the price sank similarly, bringing more than an 8% drop for the token.

Exchanges Are Divided On The Merge

Though it’s a great step towards creating super-powered token, many exchanges like Kraken and Coinbase have refused to support users on the ASI token merger. Kraken is continuing the trading of OCEAN and FET while requesting the investors to withdraw their tokens for the migration. But, Coinbase refused to run the migration for the users. Overall, none of these will support the transition of FET to ASI.

Ocean (OCEAN) and https://t.co/pOEE8X2oY0 (FET) have announced a merger to form the Artificial Superintelligence Alliance (ASI). Coinbase will not execute the migration of these assets on behalf of users.

— Coinbase Assets 🛡️ (@CoinbaseAssets) June 26, 2024

However, Bybit, one of the biggest crypto derivatives exchanges, has officially supported the ASI alliance.

What Technical Factors Say About FET Price Performance

FET is in a complete selling zone where the technical indicators and the moving averages indicate a strong bearish pull, causing the price drop. Favoring the same, the Relative Strength Index is 39, another sign of the bear dominance, casing the downtrend. Additionally, indicators like STOCH(9,6), STOCHRSI(14), and Williams %R represent the overselling of the token in the 24-hour timeframe. However, the ADX (14) is above 25, representing the build-up of buying momentum and the possibility of the trend continuing.

The nearest support is at 1.278, whereas the resistance lies at 1.3574. If the token can break past the resistance, an uptrend might begin, assisting with the recovery.

Though the FET price is in decline, these mergers usually help with new hype around the market. As it’s in the initial phase, the investors are eyeing the second phase to see how the token will move, opting for HODL.

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