The crypto AI sector has seen stellar performance recently.
Data from CoinMarketCap showed that the sector has gained 16% in cumulative market capitalization over the past week. Some of the leading tokens in this category have also recorded massive gains.
The most prominent among them were Bittensor. [TAO] and render [RENDER]which increased by 54% and 42% during the week, respectively. In comparison, the Artificial Superintelligence Alliance [FET] has achieved a respectable rebound of 35.8%.
In doing so, it has begun to change its long-term trajectory bullishly and is challenging a key resistance level. These gains could continue if the crypto AI sector continues to outperform the market.
Assessing the potential of a FET trend reversal
From November until the end of January, the $0.195 level had been a support level. It was breached and at the time of writing, it was being tested for resistance. The FET’s reaction to the local resistance at $0.185 was encouraging.
Over the past two days, the bulls struggled to find a way up. In the last hours of trading, the selling pressure seems to have exhausted. It has left the way clear for the FET bulls to reclaim the resistance at $0.195.
The moving averages outlined the bearish momentum that had been dominant until this week’s trading. The CMF has broken the zero line to show capital inflows to the FET market.
The growing demand may lead to a strong rally for the AI altcoin. However, traders should note that the FET swing structure remains bearish. The break of $0.185 was just an internal change.
The high of $0.24 precipitated the February low of $0.134, marking it as the high that bulls must overcome to change the long-term uptrend.
Short-term FET opportunity
The liquidation heat map showed that the $0.195 to $0.205 area was a local magnetic zone. The $0.240-$0.254 was the next overhead of the liquidity pool.
In the coming days, if FET prices can rise to $0.205 and stay there, it would be a good sign of bullish continuation. On the other hand, a quick rejection from the liquidity pool would be indicative of seller dominance.
Traders would want to see accepted prices above $0.20 before targeting the next move to $0.24, which lines up with the high on the daily chart.
Final summary
- The crypto artificial intelligence sector has been wildly bullish over the past week, with a clear advantage over other sectors.
- FET has been one of the strong altcoins within the artificial intelligence sector and could continue its bullish trajectory this week as well.
