The recent drop in altcoin prices is hardly surprising, given the slump in traditional financial markets and our beloved crypto space. However, for holders of the FET token (Fetch.ai) who were hoping for a significant growth following a merger with other projects, this downturn has been particularly discouraging. The merger of FET tokens with SingularityNET (AGIX) and Ocean Protocol (OCEAN) under the banner of the Artificial Superintelligence Alliance (ASI) was supposed to be a big step toward greater success and market recognition. But reality had other plans.
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For those who need a quick refresher on where this token came from, here's a little backstory. The FET token merger involves a significant rebranding and integration of several AI-focused cryptocurrencies into a new token called ASI (Artificial Superintelligence). This merger brings together Fetch.ai (FET), SingularityNET (AGIX), and Ocean Protocol (OCEAN) under the Artificial Superintelligence Alliance banner.
Now, FET, formerly known as Fetch.ai, is trading at $0.71, which is 78.32% below its all-time high reached in March. After holding steady around $1 for several months, the price of Artificial Superintelligence Alliance has fallen below this threshold.
High Trading Volumes Spark Hope for a Brighter Future
Although the price of the altcoin has dropped, its trading volume—which measures the total value of tokens sold over a specific period—has surged dramatically. The merger has increased the circulating supply, which usually boosts market capitalization since it's the product of price and tokens in circulation.
FET's trading volume jumped by 245% in the last 24 hours, approaching $300 million. This spike indicates a lot of buying and selling activity around the AI-themed token. Even though the merger isn't complete, FET's market capitalization hit $3.32 billion on July 27.
Typically, an increase in volume along with rising prices strengthens an uptrend. However, in FET's case, the price drop paired with a sharp rise in volume suggests heavy selling pressure, hinting at a potential further decline.
After the notorious market events, the token lost a significant portion of its market capitalization, falling to $1.78 billion.
Insights on the Future Price
If current market conditions persist, the cryptocurrency's value could drop to $0.69. However, if buyer pressure increases, FET could make a comeback to $1.
According to the daily chart, the bulls held the $1.05 support level until August 2, when they lost control. Since then, FET's price has shown continued weakness.
Additionally, the token is trading below the 20-day exponential moving average (EMA). The EMA measures the trend direction, and when a cryptocurrency's price trades above it, the trend is bullish.
However, the fact that FET is currently trading below this indicator indicates a bearish trend. If this continues, FET's price could keep dropping.
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Despite the rough start after the merger and a significant price decline, there's still potential for FET to recover. The sharp increase in trading volume and interest in AI-related tokens could be critical in the token's future. You should brace for further volatility and closely monitor market conditions to assess the risks and opportunities associated with FET and the new ASI token.
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