Artificial Superintelligence Alliance has recovered from its $0.19 slip. [FET] The stock market continued its impressive upsurge by jumping over the short-term averages, EMA20, and EMA50.
FET has broken out of the long-term descending channel and reached a new high of $0.29. This was last seen back in November. FET’s price has closed on higher highs after it had a strong breakout.
This is the current date. FET The daily chart shows that the price of the coin was $0.28. This is an increase of 16.74%. Volumes increased 89% in the same time period to $188 Million, showing a growing activity on-chain.
The FET is a booming industry
FET is currently experiencing a price surge primarily due to the increased activity on-chain. Santiment claims that the Price DAA Divergence of altcoins has been positive for 7 consecutive days.
This metric will usually be positive when it indicates that the usage of the network is increasing faster than prices. It’s an indication to take action.
The prices are yet to reflect this, as more and more users interact with the network.
Further, the number of active addresses (24-hours) reached a new weekly record high at 1,100, which confirms increased usage.
A positive DAA price and Address rising tend to be supportive of future price growth, especially when sustained.
The scarcity of resources is increasing
As on-chain activity grew, users began to accumulate FETs aggressively. Altcoin’s exchange flow balance dropped from positive to negative after having been in a stable zone for the previous few days.
At the time of publication, Flow balance was -47k. This indicates that there were more outflows in exchange than inflows. Increased outflows often mean an accumulation of goods, which decreases the supply and causes scarcity.
Santiment
The scarcity of the altcoin has increased significantly. Stock-to-flow rose from 1.6k to 1,6k, which indicates greater scarcity. Through history, increasing scarcity is often the precursor of higher prices.
What is next for FET
FET experienced a steady upward trend as the on-chain activities skyrocketed. This was accompanied by an increase in demand from actual market participants.
This is why the Directional Movement Index of the altcoin rose to 36, after a bullish crossing the previous day.
TradingView
When momentum indicators show such an upward trend, they usually indicate a strong momentum. If buyers continue to hold, this momentum could be sustained.
If scarcity increases, and is supported by increased on-chain activity then FET may face resistance at $0.31. The altcoin will be able to target $0.44, the long-term EMA200.
FET needs to remain above EMA50 of $0.24 in order for the bullish view to continue. If not, FET could fall towards $0.22.
Last Thoughts
- Artificial Superintelligence Alliance [FET] Surge of 16%. Breaking out of an extended descending channel. Achieved a high $0.29.
- FET surged as a result of heightened scarcity and vigorous on-chain activities.
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Source: ambcrypto.com
