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

Introduction

In this update regarding Fetch.AI (FET), we've observed notable activity on the F chart, reacting to a significant support area that remains intact. This support zone, ranging between 1.31 and 1.42, is crucial as it aligns with our analysis of a wave two pullback in the Elliott Wave count.

The previous discussion highlighted a potential micro five-wave pattern forming an upward wave structure classified as wave 1, with wave 2 pullback expected shortly after. Maintaining support above 1.31 is key for this bullish outlook, suggesting a one-two setup. However, we must also consider the alternative yellow count, which presents a scenario forecasting further downside targets, initially pointing to 1.80.

Upon reviewing the current declination, it appears to resemble a three-wave move down. This finding necessitates a break below the 1.31 mark to strengthen the yellow scenario, which also implies a one-two setup. Probabilistic analysis favors bullish movements since the wave structure indicates strong upward potential. Nevertheless, both scenarios demand a clear pivot level to differentiate them. The 1.31 support level acts as such, with any breach below the Thursday low near 1.34 casting doubt on the bullish count.

On a more optimistic note, the current strong upward motion could signify an internal third wave as identified in the bullish white count. A breakout above the 1.48 level will further validate this count. The 1.48 to 1.485 threshold becomes a vital pivot where a sustainable move above it would undermine the bearish perspective of the yellow count.

If we hold our ground and maintain the bullish count, we could anticipate reaching targets such as 1.62 and 1.69 as the next crucial zones, with the ideal target for the third wave placed at 1.74 based on Fibonacci extension principles.

Shifting our focus to a broader perspective, examining the daily chart reveals that we may be witnessing only the beginning of a larger wave cycle following a B-wave bottom in 2022. The Elliott Wave analysis suggests that after completing wave 1 and wave 2, we could be within a fifth wave driving us towards higher targets (4.85, 6.22, or 8.71), contingent on the general market conditions in the crypto sector.

From the current standpoint, it’s essential to monitor the relevant support levels. If these levels break, our bullish outlook may weaken. Currently, we lean towards the white count, expecting direct upward movement, though a marginally lower low might still present itself before we see a rally, as illustrated by the yellow count.

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Keyword

Fetch.AI
FET
Elliott Wave
Bullish scenarios
Bearish scenarios
Support levels
Wave structure
Fibonacci extension

FAQ

What is Fetch.AI?
Fetch.AI is a decentralized AI and blockchain platform that enables the development and deployment of autonomous agents.

What are the current support levels for Fetch.AI?
The critical support levels for Fetch.AI are identified between 1.31 and 1.42.

Does the Elliott Wave analysis indicate a bullish or bearish trend?
Both bullish and bearish scenarios are possible, but recent indicators favor a bullish outlook as long as the support levels hold.

What are the targets for the bullish scenario?
The anticipated targets in the bullish scenario include levels at 1.62, 1.69, and ideally up to 1.74 based on Fibonacci extension.

What happens if the support levels break?
A breach of the key support levels would undermine the bullish count, necessitating a reevaluation of the market’s outlook toward a potential bearish scenario.