PATNA (CoinChapter.com) — Fetch.AI (FET) token price has rallied rally over 50% in a week and was trading for $0.55 on Nov. 20. But is it the right time to buy FET tokens now that it has become too expensive for average investors? Let’s dwell.
Should You Buy Fetch.AI (FET) Tokens Today?
Let’s discuss why Fetch.AI has rallied a lot recently.
OpenAI-Sam Altman Drama Behind the Surge
Fetch.AI FET price gains appear on the heels of the drama unfolding at OpenAI. Notably, the OpenAI board ousted its chief executive, Sam Altman, citing a “lack of candor” while dealing with the company’s board. It seems like a classic Apple-Steve Jobs situation.
However, the OpenAI team gave the board an ultimatum that it would resign en masse if Altman isn’t re-hired. While the board did not acquiesce to the request, Altman has apparently found new digs at Microsoft.
The incident likely impacted Fetch.AI (FET) token price action, as ChatGPT and OpenAI led the AI hype in early 2023. Another likely reason why FET prices are up could be Elon Musk revealing that X Corp. shareholders will own a 25% stake in Musk’s AI startup xAI.
Investors likely viewed the developments as an indicator of more development in the emerging technology sector, resulting in a highly positive market sentiment.
FET Price Trying To Confirm Bullish Pattern Breakout
Meanwhile, Fetch.AI (FET) token price is attempting to confirm its breakout from a bullish technical pattern called the ‘Ascending Triangle.‘
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Volume helps determine if a breakout is strong.
In an ideal world, buyers would enter the market as the trendlines close the gap, pushing prices above horizontal resistance with heavy volumes. Unfortunately, a low-volume breakout on the upside will likely fail, resulting in a pullback.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. As such, Fetch.AI’s price could rally over 427% to reach the theoretical price target near $3 if the pattern pans out.
Fetch.AI FET Token Price Faces Overbought Risks
Fetch.AI (FET) token’s price rally has resulted in the token’s daily relative strength index becoming overbought, with the metric clocking a reading of 76.01 on the daily charts.
Traders often view overbought RSI levels as a signal that the bullish momentum is reaching its peak, and the asset might be due for a trend reversal or corrective price pullback. As such, the FET price risks a correction following its recent bull run.
If the Fetch.AI (FET) token price drops, it could end up testing the support near $0.47. Moreover, a breakdown below the immediate support could allow bulls to defend the 20-day EMA (red wave) support near $0.41.
Conversely, if the rally continues, the FET price would likely flip the resistance near $0.6 before targeting the resistance near $0.674.