- Fetchai price was down 3% on Thursday morning after a double digit move the previous day.
- While prices are likely to break lower, analysts say AI remains a strong narrative and that could help FET price.
- 96% of FET holders are in profit after the Fetch.ai price spiked more than 70% in February.
Fetch.ai has dipped to support levels at $0.45 early Thursday, with the price of the native FET mirroring the broader crypto market in trending lower.
Indeed, while Fetch.ai price printed a double-digit green candle on Monday, the Artificial Intelligence (AI) related token’s value is currently testing support near $0.45 with about 5% in losses on the day.
But the AI narrative remains a strong trend and is likely to see FET regain momentum and record fresh gains as those witnessed in the past few weeks. Data shows the FET/USD pair remains 70% up over the past 30 days.
Fetcha.ai price: What analysts say about FET amid the AI narrative
AI related tokens have in recent weeks outperformed in the market, particularly after global tech giants Microsoft and Google poured resources into the sector on the back of massive hype around OpenAI’s Chat GPT.
Fetch.ai price on the daily chart. Source: TradingView
But could the narrative have run out of steam? According to crypto trader and analyst Cantering Clark, that’s unlikely. Specifically, the analyst says FET could yet see a fresh leg up as AI remains one of the hottest trends in the market.
Not sure that the A.I. run is completely dead.$FET does not look like distribution, instead it looks like it is ready for another leg toward the high at a minimum.
Personally of all narratives, A.I. is the sexiest. pic.twitter.com/LMShfQR3Nj
— HORSE (@TheFlowHorse) March 1, 2023
As shown in the chart above, FET posted a breakout from a triangle pattern on the daily chart. Bulls nonetheless ran into a hurdle just above $0.48. While there’s likelihood of a distribution move, another analyst, Altcoin Sherpa, also thinks an uptrend is the more likely trajectory.
$FET: Doesn't really look too much like distribution to me. Maybe this is going to leg up if $BTC plays nice… pic.twitter.com/TGo3fyMiTi
— Altcoin Sherpa (@AltcoinSherpa) March 1, 2023
Fetch.ai whale activity, 96% FET holders in profit
Data also shows more than 96% of FET holders are in profit after recent gains as more people looked to buy FET. While having so many addresses in profit could play a part in potential profit taking deals, the in/out the money metric by IntoTheBlock also suggests nearly 99% are long term holders.
Only 1% of FET is held by hands that bought the token in the past 1-12 months.
In fact, on-chain analytics platform Santiment has also shared data showing whale activity for Fetch.ai has recently spiked.
🐳 #Cardano, #Maker, and #Fetch have all had their moments to shine in 2023. $FET in particular, which has 5x'd since January 1st. But these 3 assets in particular have all seen steep increases in whale activity, and you can expect major swings from here. https://t.co/aLMD7PMdZ1 pic.twitter.com/LTjrHdfTWy
— Santiment (@santimentfeed) March 2, 2023
On the downside, if sentiment across the wider market turns negative, bears can target the immediate demand zone around $0.38 and even go for $0.29.