The post FET Tests Critical $1 Support Amid Potential Undervaluation and Market Pressures appeared on BitcoinEthereumNews.com.

The recent downturn in the cryptocurrency market has significantly impacted FET (Fetch.ai), with prices testing a critical support level of $1 amid increasing bearish pressure. In the past week alone, FET has seen a dip of over 20%, raising concerns among investors regarding its valuation and market position. According to sources from COINOTAG, as active addresses rise, there are indications of potential accumulation, despite the prevailing bearish sentiment. FET faces a critical $1 support level after a significant price drop, with metrics indicating potential undervaluation and a possible accumulation phase. FET’s Struggles Amid Broader Market Dynamics Fetch.ai (FET) has recently found itself in a precarious situation, underscored by a significant drop in value over the past week. Trading around the key $1 support level, the altcoin’s movement mirrors broader negative trends in the cryptocurrency landscape, including increasing bearish sentiment triggered by external market influences. The Impact of Rising Competition from DeepSeek AI The emergence of DeepSeek AI has sent ripples across both the cryptocurrency and traditional financial markets, influencing investor sentiment and contributing to the bearish trend affecting tokens like FET. Market analysts suggest that the competition from these traditional AI networks fosters concerns regarding the viability and future of decentralized AI projects, directly impacting FET’s price and trading volume. Assessing FET’s Current Valuation On-chain indicators present a mixed yet revealing picture for FET investors. The altcoin’s MVRV ratio currently rests at -6.744%, pointing towards possible undervaluation. Historically, an MVRV ratio below zero has been preceded by price recoveries, indicating that a rebound might be on the horizon if FET can maintain its position around the $1 level. Source: Santiment Additionally, FET’s daily on-chain transaction volume in profit has declined to 976K, marking a notable low. This trend suggests traders are holding onto their assets during unfavorable market conditions rather…

---

Filed under: News - @ January 29, 2025 9:25 am