FET Price Analysis: Token Merger Delay Fuels FET Sell-Off. Where Is It Likely To Find Support After Bullish Pennant BreakDown?

The highly anticipated token merger between three major decentralized artificial intelligence projects - SingularityNET (AGIX), Fetch.ai (FET) and Ocean Protocol (OCEAN) has been pushed forward to July 15th 2024. The merger which was initially planned for June 13th will unite the three tokens into a single new token called ASI under a unified decentralized AI network.

The highly anticipated token merger between three major decentralized artificial intelligence projects - SingularityNET (AGIX), Fetch.ai (FET) and Ocean Protocol (OCEAN) has been pushed forward to July 15th 2024. The merger which was initially planned for June 13th will unite the three tokens into a single new token called ASI under a unified decentralized AI network.

The delay was announced so as to allow more time to meet the technical requirements of ecosystem partners involved. According to the Artificial Superintelligence Alliance behind the merger, rescheduling to 15th July ensures an easy transition to the new ASI network and token by finalizing complex third party integrations and coordinating all necessary elements.

The chairman of the Alliance and CEO of Fetch.ai stated that the delay does not affect the significant progress toward creating a decentralized super intelligence network and that It allows them to exceed the needs and technical requirements of their partners for a smooth migration.

Originally the plan was for  FET token holders to migrate to the new ASI token via a migration contract on June 11th with AGIX and OCEAN holders following later. However the new timeline will have all three tokens merge simultaneously into ASI on July 15th.

Until then, FET, AGIX and OCEAN will continue trading independently on crypto exchanges. Once the merger is complete independent trading of the three old tokens will cease as they unify into the ASI token under the new decentralized AI network.

Technical Analysis Show Bearish Signals for FET

Taking a look at the  FET technicals, they are flashing bearish signals ahead of the merger. According to data from CoiMarketCap FET is currently trading at $1.53 which is down by 7.27% in the last 24 hours and over 30% over the last 7 days.

On the daily chart FET price had been trapped in a bullish pennant pattern since hitting a high of $3.49 on March 28th. It then dropped over 53% to a low of $1.60 on April 13th before finding support at that level.

However FET attempted to break out from the pennant on May 22nd but was rejected sharply. Since then it has been bearish and has recorded 6 consecutive daily bearish candles after breaking down from the bullish pennant pattern support as evidence in our previous report, signaling downtrend continuation. The rescheduling prrooves to have played a part in this bearish tone, second to the overall crypto market drop from Friday 7th June.

The daily Relative Strength Index (RSI) is showing an extremely oversold reading of 23 suggesting the possibility of a short term bullish correction to ease oversold conditions before continued downside. The Moving Average Convergence Divergence (MACD) indicator also shows bearish momentum with the MACD line trading below the signal line and a negative histogram reading which is below the zero mark.

How long can it deep and where could it likely find support?

On the daily timeframe, there is a fair value gap ranging from 1.28 to 1.12 that may act as support level for FET.

With a market cap of $1.3 billion and 24-hour trading volume of $201 million FET currently ranks 67th and 48th respectively among all crypto assets by those metrics.

As the token merger date of July 15th approaches we watch closely FET price action and the developments surrounding the launch of the new ASI token and decentralized AI network. This will provide solid ground for FET potential resurgence.