FET price rally 25% amid hidden reversal concerns

Artificial Superintelligence Alliance (FET) posted a 25% gain this week, showing a recovering price pattern on the chart. While the upside looks encouraging, underlying bearish signals suggest that cryptocurrency is gearing up for a big fall.

Of greater concern to investors is the formation of a key bearish pattern that determines the loss of FET holders.

FET sell in front of investors

The Price DAA divergence is currently flashing a sell signal for FET, raising concerns about sustainability. Inflation is separating from the downward movement of the network, which often creates a mismatch that leads to a correction. Historically, similar conditions have triggered price falls, which can alter investor optimism.

The difference suggests that despite recent results, FET's bullishness may be short-lived. To align the price with the movement on the chain, a correction seems inevitable. This pattern reflects the tendency of markets to rebound when prices outpace organic network growth.

The FET macro-momentum analyzed by average direction indicator (ADX) provides a clear picture. The ADX is currently lying below the Neutral Limit, indicating that the previous trend has weakened and may have ended. This development suggests that the FET may transition to a stable phase.

Interestingly, if the ADX starts to rise again, it shows a consolidation trend. This dynamic highlights the need for continued momentum to push the FET to its next level of resistance, giving investors hope for further growth.

FET price forecasting: escaping the pattern

FET price is on the verge of forming a bearish head and shoulders pattern, which is a warning sign for losses. A break below the $1.19 support level would confirm the pattern, potentially leading to a major decline.

Despite these bearish signs, mixed conditions suggest that the FET could still hold above $1.40 even if it struggles to breach $1.71. This level of support can act as a buffer against further losses, providing some relief to investors.

If FET breaks through the $1.71 resistance to the support level, it could reach $1.95 and even $2.00. This move devalues ​​the sentiment and reinforces the upside, giving the altcoin a promising future.