Fetch.ai is a notable player in the decentralized artificial intelligence (AI) sector. FET is currently trading at $2.11 showing a drop of 2.15% in the last 24 hours. Despite a rough period marked by volatile price movements and bearish pressure FET records a market cap of $1.79 billion and as the 61st in rank of top crypto assets by market cap.

FET Price Chart: Coimarketcap

FET underwent a positive bullish rally earlier at the start of the year and recorded its all time high at $3.4850 on March 28th. Which was then followed by a sharp correction of 53% pushing the price down to $1.6005 on April 13th. Since May 22nd FET has been struggling to maintain an uptrend momentum and still continued to trade within the bullish pennant pattern which is mostly termed as a bullish continuation pattern. But can the current support level hold against further drops for the bullish momentum to steer a break out?

Today May 4th the price opened at $2.13 and has since then been decreasing. Currently testing the support level of the bullish pennant. The market is showing mixed  signals. it could either break below this level or rebound towards the resistance possibly reaching recent lower high of $2.6 and revisiting its all-time high at $3.4.

But which one is more likely between the two?

The technical indicators show a mixed outlook. The daily stochastic indicator shows an oversold condition with a reading of 11 suggesting that a price rebound might be witnessed soon.

FETUSD Daily Chart: TradingView

However, the moving averages show a different picture with both the 50 and 100-day exponential moving averages above the current price at $2.22 and $2.3 respectively signaling a bearish momentum. The 200-day EMA however, offers a better bullish sentiment, currently below the current FET market price at $1.4971 which could act as a strong support in case of further declines below the current support.

Looking also at the on-chain metrics data from santiment, we see a growing bearish sentiment among traders. Number of daily active addresses has decreased massively since May 21st meaning there is reduced network activity and potential selling pressure. The supply of FET on exchanges has also been rising meaning that investors might be preparing to sell adding to the short term selling pressure.

Source: Santiment

On the other strategic front FET is not standing still. A key development is the upcoming token merger with SingularityNET (AGIX) and Ocean Protocol set to commence on June 11th 2024. This will see FET tokens converted into ASI tokens at a 1:1 ratio underpinning a unified decentralized AI network. The ERC20 ASI token will launch together promoting an easy through the token migration contract which begin on June 13.

FET has developed a partnership with Chainlink also. This will help FET AI agents to access real world data opening new utilities across DeFi and supply chain management. Also the introduction of FET BlockAgent which is a blockchain monitoring tool enhances its capabilities in real-time activity monitoring across various chains, boosting strategic deployment and decision making within the Web3 ecosystem.

Both in terms of price and strategic developments the coming days and weeks will be critical for FET. The technical setup and market metrics will play crucial roles in determining its direction.