In a new technical analysisWell-known crypto analyst Gert van Lagen predicts a 500% increase in the value of Fetch.AI (FET), with a price target of $5.5. This bold prediction comes as AI-focused cryptocurrency coin FET records a 12% rise in the past 24 hours and an impressive 45% gain in the past week.
Fetch.AI is currently trading with momentum that correlates with the buzz around AI tech giant Nvidia, riding the wave of heightened interest as Nvidia approaches its Q4 2023 earnings release on February 21.
Nvidia shares have seen a remarkable 45% increase since their previous earnings report, increasing its market capitalization by an unprecedented $600 billion. As the tech community anticipates Nvidia’s next financial update, speculation is rife about the potential impact of the company’s performance on the broader AI and cryptocurrency markets.
FET, along with other AI-bound tokens such as The Graph (GRT), Injective (INJ), Render Network (RNDR) and SingularityNET (AGIX), are at a critical juncture where Nvidia’s financial results will impact investor sentiment within the next few years can significantly influence. AI and crypto sectors. A positive report from Nvidia could create a wave of enthusiasm, potentially boosting investments in AI-focused cryptocurrencies.
Fetch.AI (FET) Eyes A 500% Rally
Van Lagen’s chart shows a massive inverted ‘Head and Shoulders’ (H&S) pattern, consisting of three troughs: the left shoulder formed in early 2022, the head bottomed out in late 2022, and the right shoulder developed in August 2023.
The pattern is characterized by a ‘neckline’, a resistance level that the price must cross to confirm the reversal. For Fetch.AI, the neckline is around $0.5, a threshold that was successfully retested as support in January 2024. This retest is seen as a bullish confirmation, reinforcing the integrity of the reversal pattern.
A notable element in the analysis is the decisive breakout from the green Fibonacci resistance zone last week. The Fibonacci retracement tool is often used to identify potential support and resistance zones, and a break outside these limits usually indicates strong market conviction.
Thus, Fetch.AI has not only overcome the neckline but has also taken steps past the resistance zone, paving the way for the asset to aim for new all-time highs. Van Lagen has calculated a technical target of $5.5 for the iH&S pattern, extrapolated from the depth of the pattern’s head to the neckline, and projected upward from the breakout point.
The analyst also set a condition for the debunking of this bullish scenario: if Fetch.AI were to post a lower low (LL), it would disrupt the structure of the iH&S pattern and potentially signal a bearish shift in market sentiment. He summarizes:
FET [1W] – Head and shoulders at the bottom neatly played out:
+ December 23 right shoulder breakout and green Fib resistance zone;
+ January 24 several weeks of successful retest of the neckline;
+ February 24 approval for new ATHs
Technical target iH&S: $5.5 Invalidation: print LL
At the time of writing, FET was trading at $0.92.
Featured image from MEXC Blog, chart from TradingView.com
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