Fetch.ai’s （FET） recent price growth has put 27% of its supply in profit, posing a risk of profit-taking and potential price decline.
Points
- 27% of FET supply is now profitable.
- Potential for profit-taking could lead to price decline.
- FET price attempts to secure $1.40 support level.
Fetch.ai （FET） is currently experiencing bullish momentum, but this has also increased the risk of a price decline due to profit-taking. The recent surge in profits has triggered the potential for investors to cash out, which could bring FET back down to $1.04.
The Global In/Out of the Money （GIOM） indicator shows that about 748 million FET, worth more than $1.06 billion, turned profitable this week. This supply was bought between $1.22 and $1.37, representing about 27% of the entire circulating supply of FET. Following the recent migration of OCEAN and AGIX, the supply increased, leading to a higher amount of FET-bearing profits.
The merger of Fetch.ai, Ocean Protocol, and SingularityNET will result in the Artificial Superintelligence Alliance and its token, ASI. The second phase of this migration is expected to launch before the end of July.
However, the increase in profit-bearing supply exposes FET to potential selling pressure. Typically, the market notes significant selling activity when around 80% of the total supply becomes profitable. Considering this is the first time these investors have noted such high gains in a month, selling could start earlier, impacting the FET price.
Currently, the FET price is trading at $1.44, attempting to secure the $1.40 price into support. If profit-taking is intense, the altcoin could lose this support level, potentially drawing down to $1.20 or $1.04 again. Since $1.04 and $1.71 currently form the consolidation range for Fetch.ai’s native token, the altcoin may remain rangebound.
解説
- Profit-Taking: When a significant portion of a token’s supply is in profit, there’s a high risk of investors selling to lock in gains, which can lead to price declines.
- Support Levels: Establishing and maintaining support levels is crucial for preventing further price drops and ensuring stability in the token’s market value.
- Market Indicators: Tools like the Global In/Out of the Money （GIOM） indicator help predict potential market movements by analyzing the profitability of the token’s supply.