FET is one of the leading AI projects in the crypto space, earlier this year it saw a meteoric rise in price up to $3.5. Since then price has dropped around 80% to a local low of $0.70, now recently price has grown and broken the daily downtrend rising to a local high of $1.44 +105% from the lows creating a dilemma for traders...From previous price action we know that
FET is capable of huge moves, it's a fundamentally sound project with a strong narrative behind it. Finding a good entry to buy FET if sidelined or add to a position if already positioned can be tricky so these are my thoughts:- HTF FET has broken the daily downtrend is is looking to reverse. Altcoins have been at the mercy of Bitcoin so it requires BTC to behave too. After an -80% correction a lot of the downside risk has already played out.
- LTF we have seen a strong recovery, if you has bought local lows at $0.70 you would have outperformed the entire drawdown of the last 6 months (assuming equal position size). So the feeling of FOMO can start to creep in at these levels.
- The chart shows potential points of entry on the LTF, obviously we may continue to drawdown, it's always a possibility but we have seen signs of strength and therefore opportunities to go LONG.
- Local range low @ $1.273 is the option with the best return out of the 3. Clearly strong support that was the base for the last local rally.
- Current level is an interesting one because it incorporates a LTF diagonal resistance trendline that would be bullish if broken. This combined with a range support line (0.25) could be a good option for a LTF entry.
- The final option is the 0.5/ Midpoint entry. This would mean flipping the 15m 200EMA bullish and reclaiming the midpoint making it the safest of the 3 entries but least rewarding, offering +6% return instead of 9% & 13% respectively.
With all this in consideration,
FET is one of the better altcoin options in the markets current state. IMO we still don't have a clear market direction just yet and so being nimble with positions is a must, but it does feel like the worst is over and if that is the case then a position in FET could be positive for a portfolio. Note
Looks like we have our entry, a liquidity sweep and reclaim + trendline breakout. Tight stop under the 0.25 line. Note
SL to BEGreat start to the trade off the back of BTC moving toward $60k
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.