In a recent technical analysis by crypto analyst Shelby, the digital asset Fetch.AI (FET) is predicted to embark on a new bullish wave. Shelby has identified a classic bullish Head and Shoulders (H&S) pattern, marked by two smaller peaks on either side of a higher peak (the “head”). The pattern is completed with a “neckline” drawn at the base of the peaks. This pattern is often interpreted as a reversal signal from bearish to bullish.
According to the four-hour chart, Shelby has marked potential “Buy” and “Sell” points. Buy points are indicated at the base of the head and shoulders pattern, suggesting Shelby may believe in purchasing at the support level of the neckline. Sell points are marked at the top of the head and the peaks of the shoulders, suggesting these are the points where Shelby predicts the price will face resistance and it might be optimal to sell.
The analyst has added Fibonacci retracement levels to the chart, indicated by horizontal lines with associated values of 0.467 and 0.826, which are commonly used to identify potential levels of support or resistance. These levels are fractions derived from the Fibonacci sequence that traders use to predict areas of interest.
Additionally, Shelby has identified a subsequent pattern that resembles a Bat harmonic pattern, marked with the points X, A, B, C, and D. This pattern suggests potential reversal zones and is often used to identify trading opportunities. The D point in the pattern hasn’t been marked, indicating that the pattern is not yet complete, and Shelby predicts that the price will rise to complete the pattern.
As of press time, FET exhibits a bullish trend as the price corrects from the ongoing downtrend. FET is trading at $2.77, which is up by over 3% in the daily chart, while the weekly chart displays a notable decline of 16% as FET dropped from $3.40 to $2.50.
Despite the current bearish outlook, FET has been on an impressive run over the past month, recording an increase of 50%. The trading volume has declined to $285 million, indicating an increase in selling pressure in the FET market.
