Over the past month and a half, the price of Fetch.ai (FET) has been catching mixed signals from the market. Now investors seem to be losing confidence in the asset. However, Investors in Fetch.ai (FET) appear to be losing confidence in the asset and may start dumping it. This is indicated by a number of on-chain metrics.
Fetch.ai does not bring profit to investors
Fetch.ai’s price may decline as investors are now showing bearish sentiment. This is warned by the dynamics of the network growth indicator, which evaluates the formation of new addresses in the project network. It shows whether a project is gaining or losing popularity in the market.
In the case of FET, network growth has fallen to a seven-month low, suggesting that investors have little incentive to transact on the network.
Market to Realized Value Ratio (MVRV) also confirms the possibility of a bearish scenario. Meanwhile, the MVRV metric evaluates investors’ profits or losses. Fetch.ai’s 30-day MVRV is 12%. This shows profit and can stimulate sales.
Historically, FET corrections occur in the MVRV range of 7% – 30%, which is considered a risk zone. Meanwhile, If investors decide to take profits, Fetch.ai’s price may decline this time too.
FET Forecast: Key Support Close to Breakout
The token is trading just above the $2.22 support level. However, this price point has previously been tested as resistance, so it is important for the price to remain above it to maintain upside potential to $2.49. This level has been broken several times over the past two months, but the coin has never been able to gain a foothold above it.
Considering the factors mentioned above, FET could fall to $1.95. However, if the altcoin manages to rebound and overcome the $2.49 resistance, it could head towards $2.85. This will also invalidate the current bearish scenario on Fetch.ai.
About Fetch (FET)
Fetch (FET) is a decentralized solution in which autonomous software components perform various types of useful economic work. In part, this is the transfer of data, the provision of services – both on behalf of individuals and from entrepreneurs, governments or other interested parties. The system uses the FET token as a reward.
Fetch Network provides developers with the tools they need to develop, deploy, and monetize applications and platforms. Moreover, Fetch.ai agents operate as a network of independent parties and communicate with each other directly through the blockchain network. In addition, to complete tasks, they connect and communicate; this process is fully automated. All results are then written to the Fetch.ai chain using FET tokens.
