FET Cryptocurrency Rises Amid Surging Network Activity
The world of altcoins has seen a significant shift recently, with Fetch AI’s native token, FET, making remarkable gains. Surging 16% within a short time frame, FET has captured attention by breaking out of a prolonged descending channel and reaching a high of $0.29 – a level last seen in November.
Driving Factors: On-Chain Activity and Positive Network Metrics
FET’s performance appears to be fueled by increasing on-chain activity. Insights from blockchain analytics tool Santiment reveal that the altcoin’s Price DAA Divergence has been consistently positive for seven days. This suggests that network usage is outpacing price movement, a bullish indicator for FET.
Active addresses interacting with the network reached a weekly high of 1.1k, further confirming the upward trend in interaction. This rising engagement typically points to better investor confidence and a positive trajectory for the token’s price.
Scarcity and Market Behavior: A Key Catalyst
An interesting trend propelling FET is its increasing scarcity. The token’s Exchange Flow Balance has shown significant outflows, indicating accumulation by users as they remove FET from exchanges. This reduction in circulating supply intensifies scarcity and often triggers upward price momentum.
Noteworthy is the surge in the stock-to-flow ratio to 1.6k, reinforcing the idea of growing scarcity. Historically, periods of heightened scarcity have coincided with extended bullish runs.
Price Analysis and Next Resistance Levels
Supported by improved network metrics and increased demand, FET is now targeting its immediate resistance level at $0.31. If surpassed, a bullish trend could see the altcoin setting sights on the long-term EMA200 level at $0.44. However, it is critical for the token to maintain support above EMA50 at $0.24 to sustain this bullish outlook.
Technical indicators such as the Directional Movement Index (DMI) have further underscored the strength of FET’s momentum. The DMI has risen to 36 after forming a bullish crossover, signaling robust upward momentum. If buyers continue to hold strong, more gains could be on the horizon.
Your Takeaway: Stay Ahead with Smart Investments
FET’s current trajectory showcases how rising network activity, accumulation, and scarcity drive cryptocurrency prices. However, as with any crypto investment, risks remain. It’s vital to do thorough research and proceed with caution.
If you’re exploring altcoins or want to ride the crypto trend further, consider pairing your investment research with essential tools like a Trezor hardware wallet for secure storage of your digital assets.
