FETCH.AI FET Elliott Wave Analysis: Bullish and Bearish Scenarios

Introduction

Hello and welcome to another update regarding Fetch AI (FET). The price has recently dipped further into the support region and has now reached the 50% retracement level. This correction is currently meeting expectations, so there isn’t really any significant deviation or unusual activity at this point.

Current Price Action and Support Levels

The chart has been somewhat disappointing, and the first sign of weakness emerged when the price was unable to break above the $ 3.40 level, which corresponds to the 1.1236 Fibonacci extension of the initial wave pattern seen on this chart. Typically, in a one-two wave structure, the third wave needs to reach the 1.38 extension level, but as I’ve noted multiple times, it failed to do so.

Given this failure, we cannot necessarily expect the chart to adopt a bullish stance at this moment. Although there remains potential for upwards movement, the chart needs to prove its outlook. We need to observe a shorter time frame that reflects a new wave setup that can encourage optimism regarding a potential fifth wave.

Previously, I clearly mentioned that the strength of the third wave was insufficient. Hence, we should remain cautious regarding the potential breach of key support levels. The significant support level to watch here is around the 52-cent mark, which aligns with the golden ratio level. In any diagonal pattern—such as the one we are currently witnessing—reliability is not guaranteed. According to Fibonacci retracement levels, the 61.8% retracement is often regarded as a final reliable support level.

Insights Into the Current Wave Structure

The main takeaway from the current analysis is that due to the weak third wave, the fourth wave may easily break. I have seen similar scenarios unfold before. If the third wave had reached the 1.38 extension, we would likely see a price target around $ 4.80, affording us a better chance to secure a strong fourth wave support.

As it stands, we are still in the fourth wave, and there are no clear signs that a low has been established. I expect lower prices until we witness a significant reaction, which we can chart effectively. This correction roadmap is valid only as long as we remain above the 52-cent level.

To visualize the potential scenarios more clearly, I have incorporated a WX YXZ structure into the chart. This helps illustrate that the correction could finish at any time, but we won't know for sure without a substantial five-wave pattern emerging upward or a break above the established trend line.

As for a hypothetical scenario below the 52-cent level, we might interpret this as a three-wave wave top. This could hint that the previous rise was merely part of a larger structure that's now unraveling.

Conclusion

Currently, my analysis suggests that the situation has not altered significantly on the Fetch AI chart. We need to remain patient until a low can be confirmed and the price begins to show signs of a potential reversal. If we end up falling below 52 cents, the bearish implications of this movement must be farther assessed.

Keyword

Fetch AI
FET
Elliott Wave Analysis
Bullish Scenario
Bearish Scenario
Fibonacci retracement
Support levels
Wave structure
Price action

FAQ

Q1: What is the significance of the 52-cent level?
A1: The 52-cent level serves as a key support level for Fetch AI and is associated with significant Fibonacci retracement levels, making it crucial for determining future price movements.

Q2: What does a weak third wave indicate?
A2: A weak third wave suggests that the momentum is not strong enough to support a bullish outlook. As a result, further downward movement may be likely until significant upward indicators appear.

Q3: How can I determine if a low has been established?
A3: A low can be confirmed through the emergence of a notable upward movement or a break above the established trend line, signaling a potential shift in market sentiment.

Q4: What are the potential scenarios if the price drops below 52 cents?
A4: If the price falls below 52 cents, it may indicate a broader bearish trend, as it could suggest the formation of a three-wave top which leads to further downward movement.