Artificial Superintelligence Alliance [FET] Token Poised to Explode Higher as Bitcoin [BTC] Breaks Out

Artificial Superintelligence Alliance [FET], the $2 billion market capitalization token of the AI consortium, possessed a bullish tinge on the price charts at press time.

The market capitalization of the Artificial Superintelligence Alliance [FET] token, which is the token of the AI consortium, has placed it in the $2 billion range. The altcoin market has been trading in a sideways trend for about two weeks now.

However, Bitcoin’s [BTC] breakout to new all-time high could propel the market to higher levels.

Source: FET/USDT on TradingView

From the 1-day chart of the altcoin, there was a bearish divergence (highlighted in white) on the Money Flow Index (MFI). This was noticed as the MFI formed lower highs while the price of FET moved to new highs.

Following the divergence, the price of FET pulled back from $0.9 on 10 May to $0.7 nine days later. This retracement tested a key horizontal level.

The Fixed Range Volume Profile, plotted from late January, showed that the Value Area High was at $0.75. This level coincided with the lower high that was set in early March.

FET’s price action in the past three weeks showed that it tested the $0.75 zone and managed to reclaim it as support.

The MFI had cooled down and was approaching the neutral 50 at press time. This implication suggested that there might be more room for the price to move. A continuation move higher seemed more likely than a deeper retracement.

The $0.75 level was an important pocket of demand, which explained why it was not immediately yielded to the sellers. Another big clue was the trend of the On-Balance Volume (OBV).

The OBV had been climbing higher over the past two months. Although this trend slowed down in May, the OBV did not lower lower lows on the 1-day timeframe. Hence, sustained demand might be present, and the AI token could be seen climbing to higher levels.

Is a short-term range formation in play?

Source: Coinglass

The 1-week liquidation heatmap showed that the cluster of liquidity that had built up at $0.81 over the past five days was swept. A move to $0.83 was followed by a drop to $0.77, which was an indication of a liquidity hunt.

Some overeager short sellers were also liquidated at this time. The next pocket of liquidity overhead was at $0.835, which reached up to $0.855. To the south, another pocket of liquidity was at $0.76, which was just below the local lows.

Hence, it was likely that FET would form a range around the $0.77-$0.81 zone to allow liquidation levels to be built up in both directions. Liquidity, which was engineered like this, can then be swept before FET embarks on its next impulse move.