- FET’s Long/Short ratio stood at 0.90, indicating strong bearish market sentiment among traders.
- 53.2% of top traders had short positions, while 46.8% had long positions.
Amid the continued bearish market sentiment, price forecast from Artificial Superintelligence Alliance [FET] is poised for a massive price drop as the country has failed to maintain a crucial level of support.
The same goes for major cryptocurrencies, including Bitcoin [BTC]Ethereum [ETH] have been struggling and have experienced notable price drops over the past 24 hours.
Current price momentum
At the time of writing, FET was trading around the $1.35 level, having fallen more than 4.7% in the past 24 hours. During the same period, trading volume fell by 4.9%, indicating lower participation from traders and investors.
FET recently broke crucial trendline support, a strong consolidation zone, and the 200 Exponential Moving Average (EMA) on a daily time frame.
It closed a daily candle below the consolidation zone, confirming that this was a successful collapse.
Source: TradingView
Based on the historical price momentum, there is a high possibility that FET’s price could fall by 20% in the coming days to reach the $1.03 level.
Despite this bearish outlook, the Relative Strength Index (RSI) is in an oversold zone, indicating a possible price recovery.
However, this seems unlikely at the moment due to the prevailing bearish market sentiment.
Bearish on-chain metrics
The negative outlook for the altcoin is further supported by on-chain metrics.
According to the on-chain analytics company Mint glassFET’s Long/Short ratio stood at 0.90 at the time of writing, indicating strong bearish market sentiment among traders.
Source: Coinglass
Furthermore, the Futures Open Interest is down 6.7% over the past 24 hours and has been steadily declining, indicating continued bearish market sentiment.
At the time of writing, 53.2% of top traders had short positions, while 46.8% had long positions.
Key liquidation levels were at $1.30 on the downside and $1.38 on the upside, with traders over-leveraged at these levels, according to Coinglass data.
Source: Coinglass
If the market remains unchanged and the price of FET falls to $1.30, almost $807,000 of long positions will be liquidated.
Conversely, if sentiment changes and the price rises to $1.38, short positions worth approximately $2.17 million will be liquidated.
Read the Artificial Superintelligence Alliance’s [FET] Price forecast 2024–2025
This data shows that short sellers have made significant bets on short positions over the past 24 hours.
Combining technical analysis with on-chain metrics, such as open interest and the Long/Short Ratio, it appears that bears are currently dominating the asset, with the potential to cause a massive price drop.