Can FET’s New Burn Mechanism Trigger a Surge in Price?

News

FET-3

  • FET announces a new Earn-and-Burn mechanism, potentially reducing supply and boosting prices.
  • FET breaks out of a descending channel, testing resistance at $1.67 for further growth.
  • On-chain data and rising market sentiment suggest continued bullish momentum for FET’s price.

Artificial Superintelligence Alliance (FET) recently announced a new Earn-and-Burn mechanism. In December, up to 100 million tokens will be burned to reduce supply and possibly drive up the price. After this news, FET jumped by 9.19%, reaching $1.62. The big question now is whether this rally will continue. What do the technical indicators suggest for FET’s future?

https://twitter.com/ASI_Community/status/1862003466840768732?t=GaL7jxkDolPjjB7moPc9xg&s=19

Breaking Out of a Downtrend

FET recently broke out of a descending channel, signaling a shift in market momentum. Breakouts like this often lead to a bullish phase. Currently, FET is testing a critical resistance at $1.67. If the token clears this level, $2.56 could be the next target. With the RSI at 60.45, FET has room to grow before reaching overbought territory, which means more upside is possible.

The MVRV ratio is at -86.12%, showing that many holders are at a loss. While this might seem concerning, it could also mean FET is undervalued, setting up for a potential rebound. This could be an opportunity for long-term investors looking for a price recovery.

Strong On-Chain Data and Bullish Market Sentiment

On-chain metrics are supporting the bullish outlook for FET. While Net Network Growth has dropped slightly by 1.97%, other indicators are strong. The “Into the Money” metric is at 13.36%, suggesting that a large portion of holders are in profit. Additionally, large transactions have risen by 7.44%, showing increasing institutional interest.

With token concentration at just 0.10%, more investors are accumulating FET. The market sentiment also looks increasingly positive. Open interest has surged by 10.38%, now at $156.26M. This growth suggests traders are expecting more price increases, especially with the upcoming token burn.

With a strong technical breakout, positive market sentiment, and bullish on-chain data, FET is well-positioned for further price growth. If the token breaks through the $1.67 resistance, a move toward $2.56 seems likely. The rally looks set to continue, but investors should watch for confirmation at key resistance levels.

The post Can FET’s New Burn Mechanism Trigger a Surge in Price? appeared first on Crypto News Land.

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