Driven by its bullish on-chain metrics and potential breakouts, artificial intelligence [FET] is about to usher in a significant price increase.
Despite current bearish market sentiment, FET has surged more than 28% over the past four days, outperforming major cryptocurrencies such as Bitcoin [BTC], Ethereum [ETH], and Solana [SOL].
Will FET continue to be bullish?
At press time, the outlook for FET is positive as it is trading above the 200 exponential moving average (EMA) in the daily time frame.
Investors and traders often use this indicator to determine whether an asset is in an upward or downward trend.
In addition to this, FET is also facing strong resistance near $1.5.
Since July 2024, every time FET reaches this level, it has been under selling pressure. However, the current sentiment around FET seems to be different, as investor interest seems to be growing.
So, based on historical price momentum, if FET's daily closing price is above $1.5, it is likely to surge 26% to $1.95 or more.
On-chain data
The bullish outlook for FET is further supported by on-chain metrics. At press time, Coinglass's FET long/short ratio was 1.03, indicating bullish market sentiment. This value above 1 means more traders are betting on FET's price increase.
Meanwhile, its open futures contracts have surged 25% in the past 24 hours and have continued to increase since September 6.
The combination of rising open futures positions and long and short ratios above 1 provides potential buying opportunities. Traders and investors often use this setup to open long or short positions.
FET crosses the $1.40 mark
Currently, OpenAI is raising $6.5 billion from investors to solidify its position as one of the world's most valuable startups. The report also pointed out that if this round of financing is successfully completed, the market value of the company behind the popular artificial intelligence product ChatGPT will reach 150 billion dollars.
This round of financing will be led by Thrive Capital. Microsoft, the company's biggest investor, will also participate, and Apple and Nvidia are also discussing investment matters.
Along with this development, AI tokens, including FET, NEAR, and Render (RNDR), all increased in price. For example, the price of FET was $1.28 on September 11th. Today, the altcoin is trading at $1.37.
On September 7, the price of FET fell below $1 for a while. However, after Apple introduced the AI features of the new iPhone 16, the bulls ensured that the price would not drop below $1.30. On the daily chart, Bull and Bear Power (BBP) shows that bulls are still in control.
Negative readings for BBP indicate strong selling, with bearish dominance. However, as the indicator has a clear green bar above the signal line, the FET price is likely to continue to rise, and the potential target is close to $1.85. If bears dominate, the AI token could face a drop in price and FET could drop to $1.01.
Put simply
The bullish outlook for FET is further supported by on-chain metrics, and if FET's daily closing price is above $1.5, it could surge 26% to $1.95 or more. Short-term on-chain metrics support a bullish outlook, and bulls dominate.