FET Price Rallies 25%, But Uptrend Faces Strong Bearish Pattern

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Artificial Superintelligence Alliance (FET) has surged 25% this week, reigniting interest among crypto investors and traders. While the short-term price action paints a bullish picture, deeper technical indicators suggest caution. Behind the rally lies a growing divergence between price momentum and on-chain activity—raising concerns that the uptrend may not be sustainable. As FET approaches critical resistance levels, traders are closely watching for signs of a potential reversal.

This article dives into the key technical patterns shaping FET’s current market behavior, including divergences, momentum signals, and a potentially bearish head-and-shoulders formation. We’ll also explore possible price scenarios and what investors should watch for in the coming days.

Warning Signs Amid the Rally: Price and Activity Divergence

Despite the 25% weekly gain, a troubling disconnect has emerged between FET’s price movement and its on-chain user activity. The Price DAA (Daily Active Addresses) Divergence is currently flashing a strong sell signal.

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DAA measures the number of unique addresses interacting with the FET blockchain daily—a reliable proxy for real network usage. Recently, while FET’s price climbed, DAA has trended downward. This means fewer users are actively engaging with the network even as the price rises, a classic sign of speculative momentum rather than organic growth.

Historically, such divergences have preceded significant corrections in cryptocurrency markets. When price outpaces actual adoption, markets often correct to realign valuation with fundamentals. For FET holders, this suggests the current rally may lack the foundational support needed for sustained upward movement.

This isn’t to say the uptrend is over—but it does imply that any continuation will require renewed on-chain engagement. Without it, the risk of a pullback increases substantially.

Momentum in Transition: What the ADX Reveals

To assess the strength and direction of FET’s trend, analysts often turn to the Average Directional Index (ADX). Currently, the ADX sits below 25—the neutral threshold that separates strong trends from weak or consolidating ones.

A low ADX value indicates that FET’s prior downtrend has lost steam, possibly marking the end of a bearish phase. However, it also means the new uptrend hasn’t yet gained decisive momentum. In other words, the market is at a crossroads.

If the ADX begins to climb back above 25 while price holds steady or rises, it would confirm a strengthening bullish trend. That would be a positive development, suggesting that buying pressure is building sustainably.

Conversely, if the ADX remains flat or declines further, it could signal range-bound trading or even a reversal. Traders should monitor this indicator closely in conjunction with volume and price action at key levels.

The Bearish Head-and-Shoulders Pattern: A Looming Threat?

One of the most concerning technical setups forming on FET’s chart is a potential head-and-shoulders pattern—a classic reversal signal in technical analysis.

This pattern consists of three peaks: a higher central peak (the "head") flanked by two lower peaks (the "shoulders"), with a "neckline" drawn between the troughs. If FET’s price breaks below the $1.19 neckline support, the pattern would be confirmed, potentially triggering a bearish move toward $0.90 or lower.

Even before confirmation, the mere presence of this formation adds psychological pressure on bulls. Traders watching this level may begin taking profits or positioning for downside protection.

However, it’s important to note that patterns are not guarantees. If FET can stabilize above $1.19 and reclaim upward momentum, the head-and-shoulders setup could fail—opening the door for further gains.

Key Support and Resistance Levels to Watch

Understanding critical price zones is essential for navigating FET’s current volatility.

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If FET manages to flip $1.71 from resistance to support, it would invalidate much of the current bearish sentiment and signal strong institutional or whale accumulation. Until then, traders should treat rallies with caution—especially without confirming on-chain or volume signals.

Can FET Overcome Bearish Pressure?

The path forward for FET hinges on several factors:

  1. On-chain activity recovery – Increased DAA and transaction volume would validate the price rally.
  2. ADX trend direction – A rising ADX above 25 would confirm trend strength.
  3. Breakout or breakdown at $1.19/$1.71 – These levels will determine whether bulls or bears take control.

While short-term sentiment remains mixed, the crypto’s long-term prospects are tied to its role in the AI-blockchain convergence space—a growing niche with real-world applications in decentralized machine learning and autonomous agents.

That said, technicals dominate short-to-medium-term price action. And right now, those technicals are sending mixed messages: a recovering price, weakening fundamentals, and a fragile momentum structure.

Frequently Asked Questions (FAQ)

Q: Why is FET’s price rising if on-chain activity is declining?
A: Price can rise due to speculative trading, exchange inflows, or broader market sentiment—even without corresponding growth in user activity. However, such rallies are often unsustainable without fundamental support.

Q: What happens if FET breaks below $1.19?
A: A confirmed break below $1.19 could validate the head-and-shoulders pattern, potentially leading to a drop toward $0.90 or lower as stop-loss orders trigger and sentiment turns bearish.

Q: Can FET still reach $2.00?
A: Yes—but only if it breaks and holds above $1.71 with strong volume and on-chain confirmation. Without these conditions, $2.00 remains out of reach in the near term.

Q: Is the ADX a reliable indicator for cryptocurrencies?
A: The ADX is widely used in crypto technical analysis to measure trend strength. While not predictive of direction, it helps determine whether a trend is strong enough to trade with confidence.

Q: How can I track DAA and other on-chain metrics for FET?
A: Tools like Santiment, Glassnode, and CryptoQuant offer real-time on-chain data dashboards for monitoring DAA, exchange flows, and whale activity.

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Final Thoughts: Proceed with Caution

FET’s 25% rally has brought hope to investors after a prolonged downturn. Yet beneath the surface, bearish divergences and technical warning signs suggest that this uptrend may be fragile.

Traders should focus on confirmation—not speculation. Watch for:

Until these conditions are met, treat any rally as a potential trap rather than a breakout.

The next few weeks will be critical in determining whether FET can transition from speculative rebound to sustainable growth—or succumb to another leg down.

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